Consumer Protection Bill, 2018 passed in the Lok Sabha Thursday Dec 20,2018

The Bill was passed in the Lok Sabha on Thursday December 20, 2018. The previous day, the Bill was moved by Mr. Paswan in the House but couldn't be discussed due to pandemonium.

The Bill, originally introduced in January 2018 in the last winter session of Parliament, seeks to replace the three-decade-old Consumer Protection Act, 1986, which was amended thrice but is still found wanting in tackling the challenges posed by online transactions, and tele-, multi-level, and digital marketing.

The Corporate Affairs Ministry states that the objective of the Bill is ‘‘to provide for the protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes.’’

The Bill seeks to set up a central consumer protection authority (CCPA) to "promote, protect and enforce the rights of the consumers." The CCPA can act on complaints of unfair trade practices, issue safety guidelines, order product recall or discontinuation of services, refer complaints to other regulators, and has punitive powers such as imposing penalties.''

The Bill also seeks to provide Consumer Disputes Redressal Commissions at national, State and district-levels to look into consumer complaints. Consumer Protection Councils will also be set up at the district, State, and national level, as advisory bodies. Consumer mediation cells will be set-up on the same lines.

Consumer rights

The Bill defines “consumer rights" as the right to be protected against the marketing of goods, products or services which are hazardous to life and property. It is also the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services; and to be assured of access to a variety of goods, products or services at competitive prices. It also includes the right to be heard and to be assured that the consumer’s interests will receive due consideration at appropriate fora; to seek redressal against unfair or restrictive trade practices or unscrupulous exploitation of consumers; and the right to consumer awareness.

Product liability

The Bill also envisages provisions for product liability action on account of harm caused to consumers due to a defective product or by a deficiency in services. For example, a consumer can sue the cab aggregator if the taxi comes late and as a result, they miss a scheduled flight. Also, the case can be filed from anywhere, unlike the existing law which allows the consumer to register the complaint only from the same place of purchase of the product or where the service is availed.
The CCPA has the authority to direct the removal of a misleading advertisement, take punitive action such as imprisonment or imposing penalties on the advertiser and seller, and even barring a person from endorsing the product or service for up to a year. The Bill also lists punitive actions against those who are found manufacturing, storing, distributing, selling, or importing products that are spurious or contain adulterants.