MUMBAI: The Lok Sabha has passed the Consumer Protection Bill 2019 after due consideration and discussion. The Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan said that 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, Raosaheb Patil Danve said it aims to simplify a number of rules. 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.

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. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements. There is also a provision for class action law suit for ensuring that rights of consumers are not infringed upon. The authority will have power to impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh rupees and imprisonment for up to two years for a false or misleading advertisement. 

Commenting on the development, Advertising Standards Council of India (ASCI) chairman D Shivakumar said, "This is a great development in favour of consumers and ASCI welcomes the passing of the new Consumer Protection Bill.  Protection of consumers’ interest is also ASCI’s core mission. As an expert body dealing with complaints pertaining to misleading advertisements, ASCI has been working closely with the Department of Consumer Affairs. Complaints being received on the GAMA portal are being examined by ASCI since the launch of the GAMA portal. We expect this co-regulation model to be strengthened further as per recommendations of the parliamentary standing committee."

Salient features of the bill

1.  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
    Order recall of unsafe goods and services
    Order discontinuance of unfair trade practices and misleading  advertisements
    Impose penalties on manufactures /endorsers /publishers of misleading advertisements

2.  Simplified dispute resolution process

i) Pecuniary jurisdiction enhanced to-

    District Commission –Up to Rs 1 crore
    State Commission- Between  Rs 1 crore and Rs 10 crore
    National Commission –Above Rs 10 crore

ii) Deemed admissibility after 21 days of filing

iii) Empowerment of consumer commission to enforce their orders

iv) Appeals only on question of law after second stage

v) Ease of approaching consumer commission

    Filing from place of residence
    E-filing
    Video-conferencing for hearing 

3.  Mediation

    An Alternate Dispute Resolution (ADR) mechanism
    Reference to mediation by consumer forum wherever scope for early settlement exists and parties agree for it.
    Mediation cells to be attached to consumer forum
    No appeal against settlement through mediation

4.  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

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 arefaulty, imperfect or deficient

New bill - benefit to consumers

Presently consumers 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