Consumer Protection Bill soon in Parliament
1) India soon will have a Central Consumer Protection Authority, which will act as a national regulator for the protection of consumer rights. Designed along the lines of the United States Federal Trade Commission, this agency will have the power to take suo moto action against companies indulging in unfair trade practices to the detriment of consumers.
2)The bill will introduce class action lawsuits to India, which means that a group of people with the same or similar injuries caused by the same product or action, can sue the company as a group. If the verdict goes in their favour, all consumers in the group stand to benefit.
3) In the event of a consumer suffering from injury, death or damage resulting from any defect in the product as a result of faulty manufacturing, construction, design, testing, packaging and labelling, among other facets of the production process, the manufacturing company will be held liable.
4) One of the key new features of the bill are provisions dealing with disputes that pertain to online purchase. At present, the law isn’t clear on refunds or dispute settlement for online shoppers. Moreover, under the present law, a consumer can only proceed with legal action against a seller only at the place where the transaction in question is said to have occurred. If the new bill passes, the consumer can file a complaint electronically or at the consumer court closest to his/her residence.
5) The new bill also has provisions that subscribe hefty penalties and jail terms for adulteration and misleading advertisements by companies. Moreover, celebrities found to endorse such advertisements are liable to pay a hefty fine, endure a ban on any endorsement and even suffer a jail term.
On misleading ads, the bill provides for fine and ban on celebrities. In case of the first offence, the fine will be up to Rs 10 lakh and a one-year ban on any endorsement. For the second offence, the fine will be up to Rs 50 lakh and up to three years’ ban.
For manufacturers, the penalty is a Rs 10 lakh fine and a two-year jail term for the first offence. Repeat offenders will suffer fines up to Rs 50 lakh and a five-year prison term. Adulteration, meanwhile, could incur a life-term jail sentence.
6) In a bid to deter consumers from filing false or frivolous complaints, the bill seeks to raise the penalty from Rs 10,000 to Rs 50,000. more
2)The bill will introduce class action lawsuits to India, which means that a group of people with the same or similar injuries caused by the same product or action, can sue the company as a group. If the verdict goes in their favour, all consumers in the group stand to benefit.
3) In the event of a consumer suffering from injury, death or damage resulting from any defect in the product as a result of faulty manufacturing, construction, design, testing, packaging and labelling, among other facets of the production process, the manufacturing company will be held liable.
4) One of the key new features of the bill are provisions dealing with disputes that pertain to online purchase. At present, the law isn’t clear on refunds or dispute settlement for online shoppers. Moreover, under the present law, a consumer can only proceed with legal action against a seller only at the place where the transaction in question is said to have occurred. If the new bill passes, the consumer can file a complaint electronically or at the consumer court closest to his/her residence.
5) The new bill also has provisions that subscribe hefty penalties and jail terms for adulteration and misleading advertisements by companies. Moreover, celebrities found to endorse such advertisements are liable to pay a hefty fine, endure a ban on any endorsement and even suffer a jail term.
On misleading ads, the bill provides for fine and ban on celebrities. In case of the first offence, the fine will be up to Rs 10 lakh and a one-year ban on any endorsement. For the second offence, the fine will be up to Rs 50 lakh and up to three years’ ban.
For manufacturers, the penalty is a Rs 10 lakh fine and a two-year jail term for the first offence. Repeat offenders will suffer fines up to Rs 50 lakh and a five-year prison term. Adulteration, meanwhile, could incur a life-term jail sentence.
6) In a bid to deter consumers from filing false or frivolous complaints, the bill seeks to raise the penalty from Rs 10,000 to Rs 50,000. more
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It is a good step provided the same is implemented with a strict strictures to the judges and forums and not giving any extensions be it a date or penality as prescribed.This will give consumers 3 things-one better quality 2.Assurance to get service and Lastly for Defaulters the Consumer Court with refunds plus compensation. more
Dec 24
Any upgradation of the law is welcome. But its timely and strict implementation is also more important. At consumer forums, justice is often delayed and at times also denied. Better quality of judges and members are required. Better staffing is essential. The act prescribes a time of 6 months for resolution of disputes. But it can stretch on upto 5-10 years. Atleast I have noticed that the adjournments are mostly due to benches not being complete or absence of members. Dates are continuously given 3 -4 months apart i.e about 3 -4 hearings in a year. And during each hearing, only next date is given. The act is also not implemented in letter and spirit much to the disadvantage of the consumer. The new bill should address these issues too. There should not be more than 2 adjournments for any suit. It should be made clear that exparte judgement will be pronounced in six months if either party delays or fails to rest his case within 6 months, with no provision for appeal against this type of order, on the claim that the party was not heard. Other points of such order can always be appealed as is normal, but not on the count of not having been heard. more
Dec 23
this is a very good move , but should also include , scamsters , on line sellers like amazon, flipkart , ebay snap deal , tatacliq, etc as they lure people with false discounts , cash back promises , inflated mrps , a link should be provided on the short description of the product and link should be email to the buyers , and also should be made mandatory for them more
Dec 23
The way now the consumer courts are working, it is better, we should have any thing like this. If the Consumer Protection Bill is passed and one set up is made to look after the complaint, but the consumer protection set is not working or not effective, then what is the need. Please recollect, "Lokpal" bill is passed but Lokpal is not yet established. What is the meaning in such bill being passed. more
Dec 23
