Consumer Protection Bill 2019: Major Step for Consumer Empowerment

Consumer Protection Bill 2019: Major Step for Consumer Empowerment

Hello Friends!

            Hope you all are doing well and liking my previous posts. Today we will talk about Consumer Protection Bill 2019 that has been recently passed by Government for empowerment of Consumer. We will discuss how this bill is different from Consumer Protection Act 1986. There was lacuna in Consumer Protection Act 1986 so we need this bill to bring e-commerce websites under this bill. Let’s talk about Consumer Protection Bill 2019 in detail.

Consumer Protection Bill 2019:

Consumer Protection Bill 2019 provides for the establishment of authorities for timely and effective administration and settlement of consumer’s dispute. It will replace Consumer Protection Act 1986.

Consumer Protection Act 1986: 

CPA 1986 was enacted to consider large number of consumers in India who are illiterate and exploited by businessman.

Aim of CPA 1986:

To aware consumers about various quality control measures like Hallmark and BIS-mark and redressal mechanism against unfair practices.

Shortcomings of CPA 1986:

1. CPA has left many rural regions untouched.

2. Slow progress of addressing cases has resulted in large scale pendency.

Consumer Protection Bill 2019:

Presently consumers have only a single point of access to justice which is time consuming. Swift remedies are proposed in Bill through Central Consumer Protection Authority (CCPA).

Consumer:

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 for commercial purpose. It covers transactions through all modes like offline and online, through electronic means, teleshopping, multilevel marketing and direct selling.

E-commerce Guidelines for Consumer Protection Bill 2019:

1. Mandatory for e-commerce entities to accept returns if products delivered are defective, wrong and spurious.

2. Every e-commerce entity has to publish contact details of its grievance officer.

3. 14 day time for payments toward refund requests.

4. Self declare compliance.

5. E-commerce websites like Amazon, Flipkart are required to declare all details about their sellers.

6. Display terms of contact with seller relating to return, refund, exchange, warranty, delivery and mode of payment.

7. ‘Counterfeit products cannot be listed’ on e-commerce website.

CCPA:

1. Central Consumer Protection Authority 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 advertisement.

2. CCPA will have an investigation wing headed by a Director General which may conduct inquiry or investigation into such violations.

3. Check Adulteration of products by CCPA.

4. Imposing Penalties.

5. Protect consumers from unsafe goods and services.

Penalties for misleading advertisement:

1. Penalty on manufacturer up to Rs. 10 Lakh and imprisonment up to 2 years for misleading advertisement.

2. Fine may extend to Rs. 5 Lakh and imprisonment up to 5 years in case of subsequent offence.

3. Period of prohibition may extend to 3 years for subsequent offence.

Consumer Dispute Redressal Commission:

1. It will be set up at district, state and national level.

2. Consumer can file a complaint in relation to:

·   

     

   Unfair trade practices as mentioned in Bill:

• Defective goods or services.
• Overcharging.
• Goods and services which may be harmful for life.

How we can file an appeal before Supreme Court:

First of all complaint is filed with district consumer dispute redressal commission. Then this complaint will be heard by State CDRC. Appeal from State CDRC will be heard by National CDRC. Final appeal will lie before SC.

Up to how much amount complaint is registered in CDRCs:

CDRC	Amount
District CDRC	< Rs. 1 crore
State CDRC	> Rs. 1 crore but less than Rs. 10 crore
National CDRC	> Rs. 10 crore

Benefits of this bill to consumers:

1. This bill will be applicable on B2C (Business to E-commerce Platform).

2. Provision for class action law suit.

3. Ease of approaching consumer commission and simplification of Adjudication Process.

4. ‘Mediation’ for early disposal of cases.

5. E-commerce and direct selling.

6. In USA class suit is there similarly in this Bill class action law suit is there in online dealing. For example: Suppose you have taken House loan for one year but if you are not able to pay within one year then penalty is imposed. This provision is included in bill.

7. Consumer can go to redressal court.

8. It will look into Housing Industry, Health Industry etc.

9. ‘Parliamentary Standing Committee' for early disposal of cases.

Consumer Protection Act 1986	Consumer Protection Bill 2019
1. No regulatory body to provide safe goods and services.	1. Recall of unsafe goods and services..
2. Ineffective to bring change in industry and trade.	2. Establishment of Central Consumers Protection Authority to bring change in trade, industry through digital India.
3. No e-commerce websites at that time.	3. Applicable on e-commerce sites like Amazon, Flipkart to bring regulation in quality of product, refund policy etc.
4. No Redressal courts.	4. Consumers can go to redressal court.
5. No time limit to solve cases. It took more than 1 year.	5. Now time limit is 90 days to solve cases.
6. Competition commission has no jurisdiction to check unfair trade practices. Thus there was very big lacuna in tax regulation.	6. Action against endorses because many foods like sugary drinks are bad for many consumers leads to diabetes, hypertension.
7. No redressal mechanism to file complaint online. One has to go in court and file complaint which was very time consuming.	7. Redressal mechanism to file online complaint.

Lacuna in CPB 2019:

1. Multiple Litigations.

2. Lack of laboratories in many States.

3. Narrow definition of consumer.

4. Encourage corruption in appointment of mediators to settle disputes.

At last we can conclude that consumers are backbone of economy and no progress can occur without safeguarding their interests. The bill is holistic and comprehensive in this manner. Addressing lacuna in CPB 2019 is necessary to ensure that the new amendments bring about definitive improvements in CPA.

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