Consumer Protection Bill, 2019

With growing trend of consumerism in India, onus on government to protect the interests of consumers has increased, giving scope to replace the Consumer Protection Act of 1986. ( Here, Goods = Goods + Services )

Salient features of the Consumer Protection Bill 2019:

1. Definition of consumer:
   • Defined as a person who buys goods or avails services.
   • Doesn’t include goods for resale and services for commercial purposes.
   • All modes of transactions included. For example, offline, online through electronic means, tele-shopping, multi-level marketing or direct selling.
2. Rights of consumers:
   • be protected against marketing of goods which are hazardous to life and property.
   • be informed of the quality, quantity, potency, purity, standard and price of goods.
   • Assurance for competitive prices.
   • Redressal against unfair practices.
3. Central Consumer Protection Authority(CCPA) will be set up
   • Quasi-Judicial body.
   • To promote, protect and enforce the rights of consumers. 
   • Deals with
     • violation of consumer rights.
     • unfair trade practices.
     • misleading advertisements. 
4. Penalties for misleading advertisement: (CCPA imposes)
   • Up to Rs 10 lakh and imprisonment of up to two years.
   • Subsequent offences: Rs 50 lakh and imprisonment of up to 5 years.
5. Consumer Disputes Redressal Commission:
   • District Level ( up to Rs 1 crore )
   • State Level ( Rs 1 crore to Rs 10 crore )
   • National level ( above Rs 10 Crore )
6. Product liability:
   • Lies on product manufacturer, service provider or seller to compensate a consumer.
   • To claim compensation, a consumer has to prove any one of the conditions given in the bill.

Significance:

• Widened definition including online shopping.
• No more time consuming. Swift executive remedies are through Central Consumer Protection Authority (CCPA) are provided.
• Penalties to check misleading advertisements and adulteration of products.
• Product liability makes manufacturers and service providers more accountable.
• Redressal Mechanism strengthened.
• Speedy Disposal of cases through mediation cell.

 Issues involved:

• Alternative to the consumer forums, in the form of mediation will not solve the problem of complicated litigation.
• Improper focus on the duties of the regulator.
• Definition of CONSUMER is complicated for a laymen to understand.
• Increased liability quotient deters manufacturers.

Way Forward:

1. Time bound resolution of cases.
2. Consumer education and awareness building measures.
3. Other countries Experiences:
   • For Example, Canada, Estonia have devised advertisement regulations for unhealthy foods targeted at children.
   • Countries like UK, Ireland and Belgium have banned celebrity endorsement of unhealthy foods.

Conclusion:

Implementing this bill in letter and spirit not only gains consumer confidence but also strengthens consumer-producer relations and thereby increasing production further.