During the ongoing Parliament session, the Lok Sabha on Thursday passed the Consumer Protection Bill 2018.
The Consumer Protection Bill, 2018 replaces the archaic Consumer Protection Act, 1986.
The bill presses for consumer rights and provides a redressal mechanism for the customer complaints regarding goods and services.
To adjudicate consumer complaints properly, Consumer Disputes Redressal Commissions will be set up at the District, State, and National levels. Consumer Protection Councils will be established at the district, state and national levels to render advice on consumer protection.
Also, a Central Consumer Protection Authority will be set up to promote, protect and enforce consumer rights. The authority will have the power to issue safety notices for goods and services, order refunds, recall goods and rule against misleading advertisements.
In case, a consumer suffers from an injury from a defect in a good or a deficiency in service, he may file a claim of product liability against the manufacturer, the seller, or the service provider.
The bill also clearly defines unfair and restrictive trade practices. It calls a contract as ‘unfair’ if it affects the consumer rights.
Regarding the advertisements, the bill clearly states that any manufacturer or service provider who makes a false or misleading advertisement which is prejudicial to the interest of the consumers is liable for a jail sentence which can extend up to two years and a fine which can extend up to 10 lakh rupees.
It also states that the celebrities involved in misleading advertisements can be penalized.
(With inputs from PRS)