Lok Sabha has recently approved the Consumer Protection Bill 2018. Introducing revisions to the three-decade-old Consumer Protection Act 1986, the bill aims to fortify the rights of consumers and provides a mechanism for complaint redressal regarding deficiencies in goods and services.
Consumer Rights Encased in the Bill
The Consumer Protection Bill 2018 establishes and enforces six notable consumer rights: the Right to Safety, Right to Information, Right to Choose, Right to Seek Redressal, Right to Education, and Right to be Heard. These robust provisions establish guidelines for fair trade practices and hold manufacturers, service providers, and sellers accountable for their offerings.
Provisions and Structures in the Bill
The bill further outlines the creation of Consumer Disputes Redressal Commissions at District, State, and National levels. These will serve as adjudicating bodies addressing consumer complaints. Appeals can be escalated from lower-level commissions to higher ones, culminating in the Supreme Court hearing appeals from the National Commission.
The Central Consumer Protection Authority
A central facet of the bill is the setting up of a Central Consumer Protection Authority (CCPA) which will act to promote, protect, and enforce consumer rights collectively. The CCPA, headed by a Chief Commissioner along with other Commissioners, has the power to issue safety notices, order refunds, recall goods, and rule against deceptive advertisements. Its investigative arm will be led by a Director General.
Consumer Protection Councils and Penalties
Consumer Protection Councils are set to be established at district, state, and national levels under the new bill, with their main aim to provide advice on consumer protection. Additionally, punitive measures have been outlined for those found guilty of manufacturing, storing, distributing, selling, or importing fake or adulterated products.
Product Liability and Unfair Contracts
Consumers who suffer harm from a defect in a product or service deficiency may file a product liability claim against the manufacturer, seller, or service provider. The new bill also tackles ‘unfair’ contracts that significantly affect consumer rights and defines unfair and restrictive trade practices.
List of Notable Facts
| Factor | 1986 Act | 2018 Bill |
|---|---|---|
| Ambit of Law | All goods and services for consideration. Free and personal services are excluded. | All goods and services, including telecom and housing construction, and all modes of transactions (online, teleshopping, etc.). Free and personal services are excluded. |
| Unfair Trade Practices | Includes six types of practices, like false representation, misleading advertisements. | Adds three types of practices: failure to issue a bill or receipt; refusal to accept a good returned within 30 days; and disclosure of personal information given in confidence. |
| Product liability | No provision. | Claim for product liability can be made against the manufacturer, service provider, and seller. Compensation can be obtained by proving one of the several specified conditions in the Bill. |
| Pecuniary jurisdiction of Commissions | District: Up to Rs 20 lakh. State: Between Rs 20 lakh and up to Rs one crore. National: Above Rs one crore. | District: Up to Rs one crore. State: Between Rs one crore and up to Rs 10 crore. National: Above Rs 10 crore. |
| Penalties | Imprisonment between one month and three years or fine between Rs 2,000 to Rs 10,000, or both. | Imprisonment up to three years, or a fine not less than Rs 25,000 extendable to Rs one lakh, or both. |
| E-commerce | No provision. | Defines direct selling, e-commerce, and electronic service provider. The central government may prescribe rules for preventing unfair trade practices in e-commerce and direct selling. |
The Upgraded Bill: A New Era in Consumer Protection
In a step towards better consumer protection, the bill eases the process of filing cases against unfair trade practices. It overrules the existing law which mandated that complaints could only be registered at the place of purchase or where the service was availed. This updated bill allows complaints to be filed from anywhere, bringing greater convenience to consumers.
