Latest News

  • Home
  • National
  • Parliament passes new Consumer Protection Bill
Parliament passes new Consumer Protection Bill
Wednesday, August 7, 2019 IST
Parliament passes new Consumer Protection Bill

The bill seeks to establish a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights.

 
 

Parliament on August 6 approved a new bill to revamp the process of administration and settlement of consumer disputes, with stiff penalties including jail term for adulteration and fines for misleading ads.
 
The Consumer Protection Bill 2019, already passed by Lok Sabha, was approved in the Upper House by voice vote and will replace the Consumer Protection Act, 1986. Motions moved by Derek O'Brien (TMC) and K K Ragesh (CPI) for sending the bill to a select committee of Rajya Sabha for further scrutiny were rejected by the Upper House.
 
Members from Left parties, DMK and Trinamool Congress alleged the bill takes away indirectly the powers of the state governments and should be referred to a select committee.
 
The bill piloted by Union Food and Consumer Affairs Minister Ram Vilas Paswan seeks to establish a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights.
 
Under the Bill, celebrities endorsing misleading ads are also liable for fine.
 
The Bill strengthen the rights of consumers and provides a mechanism for redressal of complaints regarding defects in goods and deficiency in services.
 
Replying to a debate on the Bill, Paswan said that the suggestions given by members would be included in the rules framed by the Ministry under this legislation.
 
The minister said if a product is found faulty, instead of earlier individual examination, the entire batch would be examined.
 
He said the new bill seeks to take care of product liabilities and service, as well as action against publishers and celebrities of misleading advertisements.
 
Paswan said there are a number of pending cases, over 20,304 cases at national level, 1,18,319 cases at state level and 3,23,163 cases at the district level, in the country.
 
"Now we are naming district commission, state commission and national commission, with the district and state commissions under state governments," he said.
 
The minister lamented that in 118 districts out of 596 districts the posts of president of consumer commissions are vacant , besides 362 posts of members.
 
Responding to a point regarding celebrity endorsements raised by Samajwadi Party member Jaya Bachchan, Paswan said when the Bill was sent to a Standing Committee earlier, it set jail term as punishment.
 
However, later when an assessment was conducted, it was found that world-wide there is no provision of serious punishment for celebrities.
 
Paswan observed that media and celebrities must only advertise what has been given in writing to them by manufacturers, else they will be responsible (for the misleading advertisements).
 
The minister was quick to add that celebrities were also endorsing Swachhta campaign and other social messages.
 
He said the government will further examine rules regarding stunts in advertisements.
 
The bill has provisions for deterrent punishment to check misleading advertisements and adulteration of products. It also enables regulations to be notified on E-commerce and direct selling with focus on protection of interest of consumers.

 
 

Further, the bill deals with Product Liability as manufacturers or product service providers or product sellers will now be responsible to compensate for injury or damage caused by defective product or deficiency in services.
 
"Since 90 per cent of cases are coming to district consumer commissions, the compensation have been increased to Rs one crore, and Rs 10 crore for state level commissions, while the compensation for above Rs 10 crore has been kept for national commission," he said.
 
The proposed CCPA would make interventions to prevent consumer detriment arising from unfair trade practices. The agency can also initiate class action, including enforcing recall, refund and return of products.
 
The Bill also envisages simplified dispute resolution process and has provision for mediation and e-filing of cases. The consumer will be able to file cases in the nearest commission under the jurisdiction of which he resides.
 
On maximum retail price (MRP), Paswan said many restaurants were overcharging but when it tried to intervene, the matter was challenged in court.
 
He said MRP should be displayed prominently on products apart from date of expiry, date of manufacturing and complaints redressal mechanism.
 
He observed that there is no concept of levying a service charge globally and the government advised restaurants to make it voluntary.
 
Paswan urged the state governments to pay more attention to consumer awareness programmes like Jaago Graahak Jaago.
 
Participating in the debate, K C Ramamurthy (Congress) supported the bill but called for action against unfair trade practices as defined by the Bill and punitive measures thereof, saying the issue is being dealt by the Competition Commission also.
 
He demanded action against celebrities and others who promote such false advertisements.
 
Vijay Goel (BJP) suggested that a Ministry of Moral Responsibility or Moral Education be also set up to ensure that lawmakers follow certain rules. He cited the example of Ministry of Loneliness set up in UK and Ministry of Happiness in Bhutan.
 
He said the bill first came in 2015 but could not be passed by Rajya Sabha even after Lok Sabha approved it. The Bill has also been sent to two Stranding Committees, he noted.
 
Derek O'Brien (TMC) said sending the bill to a select committee is not a delaying tactic by the opposition but for ensuring that legislations are properly scrutinised.
 
He alleged that through this bill, the central government is "snatching" away the rights of states.
 
"All executive powers are retained by the Centre, but the financial burden of setting up consumer commissions lies with the states. The states federal powers have been taken away," he noted.
 
O'Brien quoted Dr B R Ambedkar who had stated that "there is a majority and there is a minority and the rights of minorities should be protected".
 
Earlier, Paswan noted that it is a long pending legislation and except five, all recommendations of a parliamentary standing committee have been included in the bill.
 
He said this "non controversial" bill among other things, proposes setting up of Consumer Disputes Redressal Commission and forums at the district, state and national levels for adjudicating consumer complaints.
 
"This bill is a must in the current juncture but takes away the states powers. What is the reason for taking away the states powers indirectly in every bill?," DMK member Tiruchi Siva questioned in Rajya Sabha.
 
He pointed to to a provision in the bill wherein members of the state and district level consumer disputes redressal forums will be appointed by the central government, "usurping the powers of the state".
 
While proposing that the bill be referred to a select committee, Siva said the disputes redressal forums proposed in the bill do not have members from judiciary.
 
"How can it be called a quasi-judiciary body? It is a pseudo-judiciary body," he said.
 
Echoing the views, CPI(M) member K K Ragesh alleged it was a "sabotage of federalism" and centralisation of powers". He said states' powers to frame rules has been snatched away.
 
Supporting the bill, RJD member Manoj Kumar Jha noted, "In this session of Rajya Sabha, there was a pattern to reduce the position and powers of states. BJP has always been concerned about federalism. I don't know where those concerns have gone now."
 
He urged the government to take steps against advertisers on financial instruments and mutual funds to ensure the advertisements are clear to consumers.
 
Claiming that the bill is not "foolproof" and has many "drawbacks", TRS member K Keshava Rao said the government has not accepted the 11 recommendations of the Parliamentary Standing Committee that vetted the draft law.
 
He also said it challenges the federalism as members of the state and district forums will be appointed in consultation with the central government.
 
Rao also pointed that the bill has not been drafted in a "simple language" for the benefit of consumers. The definition of consumer rights is written in a complicated way, he said.
 
Speaking in favour of the bill, Ravi Prakash Verma (SP) demanded that the government create a consumer-friendly ecosystem in the country and create more awareness about consumer rights.
 
Amar Patnaik (BJD) said the bill is good but several things need to reconsidered, especially definition of consumer should be broadened. He welcomed the provision on class action.
 
Supporting the bill, Kahkashan Perween (JD-U) shared her bad experience of buying diabetes medicine from an online platform.

 
 
 
 
 

Related Topics

 
 
 

Trending News & Articles

 Article
Here is the full list of 827 porn websites banned by the DoT

While the Uttarakhand High Court has asked to block 857 websites, the Ministry of Electronics and IT (Meity) found 30 portals without any pornographic content. ...

Recently posted . 61K views . 1 min read
 

 Article
Class XII Boys Raped 16-Year-old in Dehradun School After Watching Porn on Phone: Police

The four boys as well as five school officials, including the director and principal, were arrested after the incident. The minors were presented before the Juvenil...

Recently posted . 8K views . 1 min read
 

 Article
Sept 27,2001 Rahul Gandhi and his girl friend Veronique,was arrested in Logan airport in Boston

Rahul was having an Italian passport and was carrying suitcase full of dollars. Some say it was about was it $2 million. Rahul and his girl friend was th...

Recently posted . 7K views . 7 min read
 

 Article
TOP 10 GYM EQUIPMENT BRANDS IN INDIA 2017

True – Tr...

Recently posted . 6K views . 83 min read
 

 
 

More in National

 Article
NRI Man Sees 'Sleazy' Video Of Wife, Burns Her, Children, Self In Punjab

Kulwinder Singh,35, who was lived in Jordan, was enraged after coming across a video of his wife, they said.  

Recently posted. 460 views . 0 min read
 

 Article
‘Foreigners are foreigners’: Brahmaputra Valley says no to granting Bangladeshi Hindus citizenship

Several groups argue that this would lend a communal colour to the debate about illegal immigration in Assam.

Recently posted. 810 views . 0 min read
 

 Article
‘Ma, I love you, may die today’: Doordarshan staffer’s video during Chhattisgarh attack

Doordarshan staffer Mormukut Sharma recorded a heart wrenching video as he lay on the ground during the Naxal attack in Chhattisgarh, which left one of his collea...

Recently posted. 852 views . 1 min read
 

 Video
8 Ways Police STOP Dangerous Cars



Recently posted . 1K views
 

 Reviews
Top Schools in Delhi-NCR



Recently posted . 1K views . 126 min read
 

 Reviews
Top 10 Schools in Noida



Recently posted . 1K views . 57 min read
 

 Article
Petrol and diesel prices: Another day, another paltry reduction

Fuel prices were reduced for the eighth consecutive day on Wednesday.   New Delhi: The reduction in petrol and diesel prices by...

Recently posted. 554 views . 1 min read
 

 Article
J-K: Militant killed, 4 soldiers harmed as gunfight wraths in Bandipora

An militant was killed and four officers harmed in a gunfight in northern Kashmir's Bandipora on Tuesday morning, police and the armed force said. Zu...

Recently posted. 525 views . 12 min read
 

 
 
 

   Prashnavali

  Thought of the Day

A bird sitting on a tree is not afraid of the branch breaking because it’s trust is not on the branch but on its wings.
Anonymous

Be the first one to comment on this story

Close
Post Comment
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


ads
Back To Top