Lok Sabha passes Consumer Protection Bill, minister says 1986 law needs change

Lok Sabha passes Consumer Protection Bill, minister says 1986 law needs change

News:

Lok Sabha passed the Consumer Protection Bill, 2018 that seeks to replace the Consumer Protection Act, 1986.

Important Facts:

The highlights of the Bill are: –

• Replaces the Consumer Protection Act, 1986 –
  • The Bill enforces consumer rights, and provides a mechanism for redressal of complaints regarding defect in goods and deficiency in services.
• Consumer Disputes Redressal Commissions
  • Will be set up at the District, State and National levels for adjudicating consumer complaints. Appeals from the District and State Commissions will be heard at the next level and from the National Commission by the Supreme Court.
• The Bill sets up a Central Consumer Protection Authority
  • To promote, protect and enforce consumer rights as a class. It can issue safety notices for goods and services, order refunds, recall goods and rule against misleading advertisements.
  • CCPA is a national level regulator dealing with matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers.
  • The District Collector is empowered to report to the CCPA regarding mass consumer complaints in the concerned jurisdiction.
  • CCPA has power to order recall of goods which are dangerous, hazardous or unsafe and to direct discontinuation of practices which are unfair and prejudicial to the interests of consumers.
  • The district Commissions are authorised to look into complaints involving claims worth one crore rupees, which was 20 lakh rupees earlier.
  • The State Commissions’ limit is to be increased from one crore rupees to 15 crore rupees. Complaints over and above that limit would be handled by the National Commission.
• Consumer Protection Council:
  • The Bill establishes Consumer Protection Councils at the district, state and national levels to render advice on consumer protection.
• Offences
  • The Bill makes violation of consumer rights punishable offences
  • The Bill also addresses the menace of adulteration, by making manufacture, sale, storage of products mixed with adulterants punishable offences.
  • Cognizance of offence can be taken by a court only on a complaint filed by CCPA.
• Product Liability
• The Bill allows a person to make a claim of product liability against a manufacturer, seller, or service provider for any defect in a product or deficiency in a service. A claim for compensation may be made for any harm caused, including: (i) property damage; (ii) personal injury, illness, or death; and (iii) mental agony or emotional harm accompanying these conditions.
  • The Bill also addresses new age developments like e-commerce, direct selling, tele-marketing etc.
• Key Issues with the Bill:
  • The Bill sets up the Consumer Disputes Redressal Commissions as quasi-judicial bodies to adjudicate disputes. The Bill empowers the central government to appoint members to these Commissions.  The Bill does not specify that the Commissions will comprise a judicial member.  If the Commissions were to have members only from the executive, the principal of separation of powers may be violated.
  • The Bill empowers the central government to appoint, remove and prescribe conditions of service for members of the District, State and National Consumer Disputes Redressal Commissions. The Bill leaves the composition of the Commissions to the central government.  This could affect the independence of these quasi-judicial bodies.
  • Consumer Protection Councils will be set up at the district, state, and national level, as advisory bodies. The State and National Councils are headed by Ministers in-charge of Consumer Affairs.  The Bill does not specify whom the Councils will advise.  If the Councils advise the government, it is unclear in what capacity such advice will be given.
  • No visible provisions have been observed in the bill to provide control over online trading which has been on increasing trend.