New Delhi: The Parliament on Tuesday approved a new bill to revamp the process of administration and settlment of consumer disputes, with strict penalties including jail term for adulteration and misleading ads by companies.
The Consumer Protection Bill 2019, already passed by Lok Sabha, was approved in the Upper House by voice vote and will replace the Consumer Protection Act, 1986. Amendments moved by Derek O’ Brien (TMC) and K K Ragesh (CPI) for sending the bill to a select committee of the Rajya Sabha for further scrutiny were rejected by the Upper House. Under the Bill, celebrities endorsing misleading ads are also liable for fine.
The bill piloted by Union Food and Consumer Affairs Minister Ram Vilas Paswan seeks to establish a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights. The Bill strengthen the rights of consumers and provides a mechanism for redressal of complaints regarding defects in goods and deficiency in services.
Replying to a debate on the Bill, Paswan said that the suggestions given by members would be included in the rules framed by the Ministry under this legislation. The minister said if a product is found faulty, instead of earlier individual examination, the entire batch would be examined.
He said the new bill seeks to take care of product liabilities and service, as well as action against publishers and celebrities of misleading advertisements.
Paswan observed that media and celebrities must only advertise what has been given in writing to them by manufacturers, else they will be responsible (for the misleading advertisements).
The minister was quick to add that celebrities were also endorsing Swachhta campaign and other social messages. He said the government will further examine rules regarding stunts in advertisements.
On maximum retail price (MRP), Paswan said many restaurants were overcharging but when it tried to intervene, the matter was challeged in court.
He said MRP should be displayed prominently on products apart from date of expiry, date of manufacturing and complaints redressal mechanism. He observed that there is no concept of levying a service charge globally and the government advised restaurants to make it voluntary.
Paswan urged the state governments to pay more attention to consumer awareness programmes like ‘Jaago Graahak Jaago’.
Paswan earlier noted it is a long pending legislation and except five, all recommendations of a parliamentary standing committee have been included in the bill. Paswan said the government had dropped health care from the bill as several members had objected to it.
He said this “non controversial” bill among other things, proposes setting up of Consumer Disputes Redressal Commission and forums at the district, state and national levels for adjudicating consumer complaints.
It also seeks to set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights 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.
He pointed to to a provision in the bill wherein members of the state and district level consumer disputes redressal forums will be appointed by the central government, “usurping the powers of the state”. (PTI)
