Parliament passes Consumer Protection Bill

The Parliament has passed the Consumer Protection Bill 2019. The Rajya Sabha on August 6, 2019 and the Lok Sabha on July 30, 2019 passed the Bill 2019 after due consideration and discussion.

Objectives

As per the Union Minister for Consumer Affairs, Food and Public Distribution Shri Ram Vilas Paswan, the bill aims at protecting the interests of consumers by establishing authorities for timely and effective administration and settlement of consumers’ dispute.

Moving the Bill, Minister of State for Consumer Affairs, Food and Public Distribution, Shri Raosaheb Patil Danve said the Bill aims to simplify a number of rules.

Shri Danve said consumers do not get quick redressal of their complaints and with the passage of the Bill, consumers will be able to get speedy justice. He said the government aims to simplify the entire process of redressal of consumer grievances.

Provisions

Under the Bill, there is provision for central government to set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers and will be empowered to investigate, recall, refund and impose penalties.

Central Consumer Protection Authority (CCPA): Executive Agency to provide relief to a class of consumers. The CCPA will be empowered to-conduct investigations into violations of consumer rights and institute Complaints /Prosecution, rrder recall of unsafe goods and services, order discontinuance of Unfair Trade Practices and Misleading Advertisements and impose penalties on Manufactures /Endorsers /Publishers of Misleading Advertisements.

Simplified Dispute Resolution process: Pecuniary Jurisdiction enhanced to-District Commission –Up to Rs1 crore, State Commission- Between Rs1 crore and Rs 10 crore and National Commission –Above Rs.10 crore.

Mediation: The bill has a provision for an Alternate Dispute Resolution (ADR) mechanism. It has also the reference to Mediation by Consumer Forum wherever scope for early settlement exists and parties agree for it. The bill says that Mediation cells to be attached to Consumer Forum.

Product Liability: A manufacturer or product service provider or product seller to be responsible to compensate for injury or damage caused by defective product or deficiency in services.

Beneficial for 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

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

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