Consumer Protection Bill

GS-II: Consumer Protection Bill

Context

Consumer Protection Bill, 2019 gets Parliamentary approval.

Provision of the Bill:

Definition of consumer:

A consumer is defined as a person who buys any good or avails a service for consideration.

What it cover?

It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.

What it doesn’t cover?

It does not include a person who obtains a good for resale or a good or service for commercial purposes.

Six consumer rights have been defined in the Bill, including the right to:

(i)Be protected against the marketing of goods and services which are hazardous to life and property. (ii)Be informed of the quality, quantity, potency, purity, standard and price of goods or services; (iii) Be assured of access to a variety of goods or services at competitive prices (iv) Seek redressal against unfair or restrictive trade practices.

Functions of Central Consumer Protection Authority (CCPA) :

CCPA shall promote, protect and enforce the rights of consumers.
It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.

Jurisdiction of Consumer Disputes Redressal Comission (CDRCs):

The District CDRC will entertain complaints where the value of goods and services does not exceed Rs one crore.
The State CDRC will entertain complaints when the value is more than Rs one crore but does not exceed Rs 10.

Why is this Bill significant?

Swift remedies: Presently consumers only have a single point of access to justice, which is time-consuming. Additional swift executive remedies are proposed in the bill through Central Consumer Protection Authority (CCPA).
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.
Ease of approaching Consumer Commission and Simplification of the Adjudication process.
Scope for early disposal of cases through mediation.

Source: The Hindu

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