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    The Consumer Protection Bill

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    Stuti Rawat
    The Consumer Protection Bill, 2019 was introduced in Lok Sabha to replace the Consumer Protection Act, 1986. Key features of the Bill include establishing a Central Consumer Protection Authority (CCPA) to regulate matters related to consumer rights violations. The CCPA will have powers to order recalls, investigate misleading ads, and impose penalties up to Rs. 10 lakh or 5 years imprisonment. The Bill also establishes Consumer Disputes Redressal Commissions at the district, state and national levels for consumers to file complaints. It defines the rights of consumers and jurisdictions of the commissions.

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    The Consumer Protection Bill

    Uploaded by

    Stuti Rawat
    34 views2 pages
    The Consumer Protection Bill, 2019 was introduced in Lok Sabha to replace the Consumer Protection Act, 1986. Key features of the Bill include establishing a Central Consumer Protection Authority (CCPA) to regulate matters related to consumer rights violations. The CCPA will have powers to order recalls, investigate misleading ads, and impose penalties up to Rs. 10 lakh or 5 years imprisonment. The Bill also establishes Consumer Disputes Redressal Commissions at the district, state and national levels for consumers to file complaints. It defines the rights of consumers and jurisdictions of the commissions.

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    The Consumer Protection Bill, 2019 was introduced in Lok Sabha to replace the Consumer Protection Act, 1986. Key features of the Bill include establishing a Central Consumer Protection Authority (CCPA) to regulate matters related to consumer rights violations. The CCPA will have powers to order recalls, investigate misleading ads, and impose penalties up to Rs. 10 lakh or 5 years imprisonment. The Bill also establishes Consumer Disputes Redressal Commissions at the district, state and national levels for consumers to file complaints. It defines the rights of consumers and jurisdictions of the commissions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views2 pages

    The Consumer Protection Bill

    Uploaded by

    Stuti Rawat
    The Consumer Protection Bill, 2019 was introduced in Lok Sabha to replace the Consumer Protection Act, 1986. Key features of the Bill include establishing a Central Consumer Protection Authority (CCPA) to regulate matters related to consumer rights violations. The CCPA will have powers to order recalls, investigate misleading ads, and impose penalties up to Rs. 10 lakh or 5 years imprisonment. The Bill also establishes Consumer Disputes Redressal Commissions at the district, state and national levels for consumers to file complaints. It defines the rights of consumers and jurisdictions of the commissions.

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    The Consumer Protection Bill, 2019

    Note: This Bill is similar to the Consumer Protection Bill, 2018.


    The Consumer Protection Bill, 2019 was introduced in Lok Sabha by the Minister of
    Consumer Affairs, Food and Public Distribution, Mr. Ram Vilas Paswan on July 8, 2019. The
    Bill replaces the Consumer Protection Act, 1986. Key features of the Bill include:

    • 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.

    • Rights of consumers: Six consumer rights have been defined in the Bill, including
    the right to: (i) be protected against marketing of goods and services which are
    hazardous to life and property; (ii) be informed of the quality, quantity, potency,
    purity, standard and price of goods or services; (iii) be assured of access to a variety
    of goods or services at competitive prices; and (iv) seek redressal against unfair or
    restrictive trade practices.

    • Central Consumer Protection Authority: The central government will set up a


    Central Consumer Protection Authority (CCPA) to promote, protect and enforce the
    rights of consumers. It will regulate matters related to violation of consumer rights,
    unfair trade practices, and misleading advertisements. The CCPA will have an
    investigation wing, headed by a Director-General, which may conduct inquiry or
    investigation into such violations.

    • CCPA will carry out the following functions, including: (i) inquiring into violations of
    consumer rights, investigating and launching prosecution at the appropriate forum; (ii)
    passing orders to recall goods or withdraw services that are hazardous, reimbursement
    of the price paid, and discontinuation of the unfair trade practices, as defined in the
    Bill; (iii) issuing directions to the concerned trader/ manufacturer/ endorser/
    advertiser/ publisher to either discontinue a false or misleading advertisement, or
    modify it; (iv) imposing penalties, and; (v) issuing safety notices to consumers against
    unsafe goods and services.

    • Penalties for misleading advertisement: The CCPA may impose a penalty on a


    manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years
    for a false or misleading advertisement. In case of a subsequent offence, the fine may
    extend to Rs 50 lakh and imprisonment of up to five years.

    • CCPA can also prohibit the endorser of a misleading advertisement from endorsing
    that particular product or service for a period of up to one year. For every subsequent
    offence, the period of prohibition may extend to three years. However, there are
    certain exceptions when an endorser will not be held liable for such a penalty.
    • Consumer Disputes Redressal Commission: Consumer Disputes Redressal
    Commissions (CDRCs) will be set up at the district, state, and national levels. A
    consumer can file a complaint with CDRCs in relation to: (i) unfair or restrictive trade
    practices; (ii) defective goods or services; (iii) overcharging or deceptive charging;
    and (iv) the offering of goods or services for sale which may be hazardous to life and
    safety. Complaints against an unfair contract can be filed with only the State and
    National Appeals from a District CDRC will be heard by the State CDRC. Appeals
    from the State CDRC will be heard by the National CDRC. Final appeal will lie
    before the Supreme Court.

    • Jurisdiction of CDRCs: The District CDRC will entertain complaints where value of
    goods and services does not exceed Rs one crore. The State CDRC will entertain
    complaints when the value is more than Rs one crore but does not exceed Rs 10
    crore. Complaints with value of goods and services over Rs 10 crore will be
    entertained by the National CDRC.

    • Product liability: Product liability 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.

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