Why in News?
The Consumer Protection Bill 2019 was passed in Lok Sabha recently.
What is the bill about?
- The bill was introduced in Lok Sabha by the Minister of Consumer Affairs, Food and Public Distribution.
- It seeks to enhance the protection of consumers’ interests and timely settlement of their grievances.
- The bill will replace the Consumer Protection Act, 1986 if passed.
What is the definition of Consumer?
- A consumer is defined as a person who buys any good or avails a service for a consideration.
- 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.
What are the rights of consumers?
- Be protected against marketing of goods and services which are hazardous to life and property.
- Be informed of the quality, quantity, potency, purity, standard and price of goods or services.
- Be assured of access to a variety of goods or services at competitive prices.
- Seek redressal against unfair or restrictive trade practices.
What is the Central Consumer Protection Authority (CCPA)?
- The central government will set up a CCPA to promote, protect and enforce the rights of consumers.
- Functions of CCPA:
- Inquiring through an investigation wing, the violations of consumer rights, investigating and launching prosecution at the appropriate forum.
- Passing orders to recall goods or withdraw services that are hazardous, repayment of the price paid, and discontinuation of the unfair trade practices.
- Issuing directions to the concerned trader/manufacturer/ endorser/advertiser/publisher to either discontinue a false or misleading advertisement, or modify it;
- Imposing penalties on manufacturers of unsafe goods and endorsers and publishers of misleading advertisements.
- Issuing safety notices to consumers.
What are the penalties for misleading advertisement?
- The CCPA may impose a penalty of up to Rs 10 lakh and imprisonment for up to 2 years.
- Subsequent offence - Upto Rs 50 lakh fine and imprisonment for up to 5 years.
What is the 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; and
- The offering of goods or services for sale which may be hazardous to life and safety.
- One major change from the 2018 bill is that the new bill does not insist on having at least 50% of the commission to be from judicial background.
What is the jurisdiction of CDRC?
- District CDRC – Entertain complaints where value of goods and services does not exceed Rs 1 crore.
- State CDRC – Entertain complaints where the value is more than Rs 1 crore but does not exceed Rs 10 crore.
- National CDRC – Entertain complaints where the value exceeds Rs 10 crore.
What is the product liability?
- It 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.
- To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Bill.
Source: PRS India, Business Line
