Beating the Rhetoric
The Consumer Protection Act was first passed in 1986 and consumer rights became a law for ths first time. It envisaged protecting the rights of the consumer while setting up a judical mechanism which would act as a greivance redressal mechanism in multiple stages. Since then, consumer rights across the country have been protected through the mechanism that the Act of 1986 provided. With the passage of time, as India marches into a new era, it was imperative that a new law was brought in to replace the erstwhile Bill. An attempt was made in 2015 which was however not pursued and finally it has been replaced by the Draft Consumer Protection Bill that was placed in the Lok Sabha in January 2018.
In a new global environment, the world has become far more integrated like never before. The use of global supply chain systems, information technology and IT enabled services have redrawn businesses and relations between buyer and seller. The use of new forms of businesses like online e-commerce has also posed new challenges areas that redefine the buyer seller relationship. In such changed circumstances, it was indeed imperative that a new Bill was drawn in to replace the erstwhile Consumer Protection Act 1986.
For the first time, rights of a consumer have been defined clearly, through this Bill. The Bill makes six express rights of a consumer, and violation of any of these rights would trigger action if the consumer files a complaint. Four of these rights are important. These include (a) right to be protected against marketing of goods and services which are hazardous to life and property (b) right to be informed of the quality, quantity, potency, purity, standard and price of goods or services, (c) right to be assured of access to a variety of goods or services at competitive prices (d) right to seek redressal against unfair or restrictive trade practices.
The Bill introduces a number of new provisions while strengthening some old penal provisions. For example, celebrities who are involved with misleading advertisements will be liable to pay penalties and damages. In the past two years a lot had been written on this aspect for example on the question of a certain Indian cricketer’s involvement with a builder group where a lot of people later lost their money. This new provision would seek to impose certain liablities on celebrities so that they fulfil their due diligence while accepting any advertisement while keeping their commitment to the trust placed by the people of the country, on them as well. Further those who provide misleading services or products may be liable for a jail term of upto two years and a fine of 10 lakhs. This may be further extended to a term of 10 years with the fine being raised to 50 lakhs.
The Bill also has provisons where the tribunals can launch enquiry into and act against unfair contracts. Unfair contracts have been described as those where the terms of the contract were set as such bringing disadvantage to the consumer.Those who are manufacturers are also expected to maintain product quality in all formats including design. If the quality of the product is found lacking then the manufacturer may be held liable for the same. Provisions such as these would go a long way in curbing menaces like lack of design uniformity or other issues like food and oil adulteration. Further to curb the menace of adulteration the Bill makes stringent provisions with express provisions for punishments in case of food and other adulteration.
The Bill while structuring the consumer greivance panel makes for some changes in the territorial jurisdiction. The new territorial jursidiction includes the place of business as well apart from the address of the consumer and the place where the event occured. The monetary jurisdiction of the district forum and the state commission have been enhanced so as to be exercised in respect of defective goods or deficient services of value of upto Rs. 1 crore and Rs. 10 crores, respectively, from the existing limit of Rs 20 lakhs and Rs 1 crore respectively.Further both the district as well as the state commission have been granted the powers to review their orders, a system that didn’t exist in the previous Act. In case, the issue being discussed has wider ramifications the state or the national commission make take the advice of indepedent experts from different fields.
For the first time this Bill introduces the concept of e-complaints. Aggreived parties under the new Act will be able to file their complaints with the District and State authorities through online medium as well. This is a major step from the Act of 1986 which was becoming archaic in a new IT driven India. Also, the new Bill makes provisions to allow audio video participation of parties involved in the dispute. These steps would undoubtedly make the system faster and justice more efficient. The Bill also makes the orders of district,state and national commissons legally enforceble a decree from civil court. Failure to comply with the same would result in penal provisions.
The Bill also envisages setting up a National Consumer Protection Authority to promote, protect and enforce the right of consumers. It would also check unfair practises and work in tandem with other bodies and agencies to ensure that the rights of the consumers are protected. Once the Bill is passed into an Act it would indeed herald a new era in consumer rights protection in India.
( Views expressed by the author are personal)