Lok Sabha passes Consumer Protection Bill

Source: DNA dated 21.12.2018

Three years after its introduction, the landmark Consumer Protection Bill finally got the Lok Sabha’s nod on Thursday. All 11 members, who participated in the brief discussion, supported provisions of the Bill, but apprehended that it would encroach upon the powers of the states in making appointments to Consumer Commissions. They also proposed that Consumer Disputes Redressal Commissions should have judicial members.

The Bill is aimed at providing a mechanism for redressal of complaints regarding defects in goods and deficiency in services, thus strengthening the rights of consumers. The proposed law that replaces the Consumer Protection Act, 1986, will now go to the Rajya Sabha for its approval.

Initiating the debate on the Bill, Pratima Mondal of the Trinamool Congress said the proposed Consumer Disputes Redressal Commissions should have judicial members.

She stressed that endorsement of products by celebrities should be totally barred, as they do not have the expertise to verify claims made in advertisements. Tathagata Satpathy from the BJD, said legislation like these should have a definite time-frame for review in the House.

The new provisions state that consumers can now seek penalties against misleading advertisements and their endorsers. Most importantly, the proposed law covers e-commerce where it defines direct selling and electronic service provider. The Central government may prescribe rules for preventing unfair trade practices in e-commerce and direct selling.

The Bill also sets up a Central Consumer Protection Authority to promote, protect and enforce consumer rights and can issue safety notices for goods and services, order refunds, recall goods and rule against misleading advertisements. The Bill defines contracts as ‘unfair’ if they significantly affect the rights of consumers. It also defines unfair and restrictive trade practices and provides for mediation cells attached to District, State and National Commissions for out-of-court settlements.
Further, pecuniary jurisdiction of the consumer has been increased wherein district courts can hear a case up to Rs 1 crore, state commission between Rs 1 crore and up to Rs 10 crore, and national commission above Rs 10 crore. Penalties have been increased from including imprisonment up to three years, or a fine not less than Rs 25,000 extendable to Rs 1 lakh, or both, in non-compliance of Commission orders. Earlier, the fine was only up to Rs 10,000.
Under the Bill, aggrieved consumers can also file complaints through email.
Replying to queries by MPs, Union Minister for Consumer Affairs Ramvilas Paswan said the Bill will establish authorities for timely and effective administration and settlement of consumers’ disputes. He said the legislation has not been amended for three decades and need changes for strengthening consumer rights.