SME Times News Bureau | 06 Aug, 2019
The Parliament on Tuesday gave its nod to the landmark
Consumer Protection Bill, 2019 which aims to protect the rights of consumers by
establishing authorities for timely and effective administration and settlement
of consumers’ dispute.
The Bill was passed by the Lok Sabha on 30th July, 2019 and
was passed by Rajya Sabha today through a voice vote. The Bill will replace the
more than three decades old Consumer Protection Act, 1986.
Moving the bill for consideration and passing in Rajya
Sabha, Union Minister of Consumer Affairs, Food and Public Distribution Ramvilas
Paswan said that the new legislation would ease the overall process of consumer
grievance redressal.
Paswan said that this new bill will provide a better
mechanism to dispose consumer complaints in a speedy manner and will help in
disposal of large number of pending cases in consumer courts across the nation.
He stated that this bill was a long pending legislation and
all the recommendations of the Parliamentary Standing Committee were
incorporated in the bill except for five recommendations.
The minister also assured all the members of Parliament that
their suggestions would be incorporated in the rules to the extent possible
within the legal framework.
The bill, among other things, proposes setting up of a
Central Consumer Protection Authority (CCPA) to promote, protect and enforce
the rights of consumers as a class.
The 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, 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.
For the first time there will be an exclusive law dealing
with Product Liability. A manufacturer or product service provider or product
seller will now be responsible to compensate for injury or damage caused by
defective product or deficiency in services.
Additional swift executive remedies are proposed in the bill
through CCPA. There are provisions for 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. The
Bill also enables regulations to be notified on E-commerce and direct selling
with focus on protection of interest of consumers.