7 PM | Rajya Sabha passes Consumer Protection Bill | 7th

August, 2019
blog.forumias.com/article/7-pm-rajya-sabha-passes-consumer-protection-bill-7th-august-2019

Context: Salient features of the Consumer Protection Bill, 2019.

More in news:

The bill was passed by the Lok Sabha on July 30.

The bill was passed in Rajya Sabha on 6 August without referring to select
committee.

The Consumer Protection Bill, 2019 was introduced in Lok Sabha by the Minister of
Consumer Affairs, Food and Public Distribution. The Bill replaces the Consumer
Protection Act, 1986.

Aim of the bill: The bill aims at protecting the interests of consumers by establishing
authorities for timely and effective administration and settlement of consumers’
dispute.

Definition of the consumer: A consumer is defined as a person who buys any good or
avails a service. It does not include a person who obtains a good for resale or a good or
service for commercial purpose. It covers transactions through all modes including
offline and online through electronic means, teleshopping, multi-level marketing or
direct selling.

Rights of consumers: Six consumer rights have been defined in the Bill, these are:

1. The right to be protected against the marketing of goods, products or services

which are hazardous to life and property.
2. The right to be informed about the quality, quantity, potency, purity, standard and
price of goods, products or services, as the case may be, so as to protect the
consumer against unfair trade practices.
3. The right to be assured of access to a variety of goods, products or services at
competitive prices.
4. The right to be heard and to be assured that consumer's interests will receive due
consideration.
5. The right to seek redressal against unfair trade practice or restrictive trade
practices or unscrupulous exploitation of consumers.
6. The right to consumer awareness.

Salient Features of the Bill:

Central Consumer Protection Authority: The central government will set up a

Central Consumer Protection Authority (CCPA) to promote, protect and enforce the
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 rights of consumers. It will regulate matters related to violation of consumer rights,
unfair trade practices, and misleading advertisements.
Functions of CCPA:
issue safety notices
pass orders to recall goods, prevent unfair and restrictive trade practices
inquiring into violations of consumer rights, investigating and launching
prosecution at the appropriate forum
reimburse purchase price paid
impose penalties for false and misleading advertisements.
It may also file complaints before the Consumer Disputes Redressal
Commissions.
Consumer Disputes Redressal Commission: CDRCs will be set up at the district,
state, and national levels. A consumer can file a complaint with CDRCs in relation
to:
unfair or restrictive trade practices
defective goods or services
overcharging or deceptive charging
The offering of goods or services for sale which may be hazardous to life and
safety.
Jurisdiction of CDRC:
District Commission: Up to Rs1 crore
State Commission: Between Rs1 crore and Rs 10 crore
National Commission: Above Rs.10 crore
Product liability: Product liability means the liability of a product manufacturer,
service provider or seller to compensate a consumer for any harm or injury caused
by a defective good or deficient service.
The Basis for product liability action will be:
Manufacturing defect
Design defect
Deviation from manufacturing specifications
Not conforming to express warranty
Failing to contain adequate instruction for correct use
Services provided are faulty, imperfect or deficient
Ease of approaching consumer commission:
Filing from place of residence
E-filing
Videoconferencing for hearing

Comparison of the Consumer Protection Act, 1986 with the Consumer Protection
Bill, 2019:

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Benefit to Consumers:

Presently Consumer only have a single point of access to justice, which is time
consuming. Additional swift executive remedies are proposed in the bill
through Central Consumer Protection Authority (CCPA)
Deterrent punishment to check misleading advertisements and adulteration of
products
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 Product liability provision to deter manufacturers and service providers from
delivering defective products or deficient services
Ease of approaching Consumer Commission and Simplification of Adjudication
process
Scope for early disposal of cases through mediation
Provision for rules for new age consumer issues: e-commerce & direct selling

Conclusion: The Consumer Protection Act, 1986 was enacted to provide for better
protection of the interests of consumers and for the purpose of making provision for
establishment of consumer protection councils and other authorities for the settlement
of consumer disputes, etc. Although, the working of the consumer dispute redressal
agencies has served the purpose to a considerable extent under the said Act, the
disposal of cases has not been fast due to various constraints. The proposed Bill
provides for the establishment of an executive agency - Central Consumer Protection
Authority (CCPA). This fills an institutional void in the regulatory regime extant. The new
Bill seeks to take care of product liabilities and service, as well as action against
publishers and celebrities of misleading advertisements.

Source: https://indianexpress.com/article/india/rajya-sabha-passes-consumer-
protection-bill-5883905/

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