Globalization, increase in trade, emergence of new modes of
dealings and supplies and e-commerce have created new options and opportunities
for consumers. However, the same have also made the consumers vulnerable to new
forms of unfair trade and unethical business practices. This necessitated the
need to amend the existing framework for the protection of rights and interests
of consumers. The Consumer Protection Bill 2018 was introduced in the Lok Sabha
on 5th January 2018 and seeks to replace the existing Consumer
Protection Act 1986.
Key Highlights of the Bill
- Regulator- The existing framework does not provide for a Regulator. The Consumer Protection Bill 2018 provides for establishment of a Regulator called as the Central Consumer Protection Authority (hereinafter referred to as "CCPA"), which will be an executive agency to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class. A complaint relating to violation of consumer rights or unfair trade practices or false or misleading advertisements which are prejudicial to the interests of consumers as a class may be forwarded either in writing or in electronic mode, to the CCPA.
- Product liability- The existing framework has no provision with regard to product liability. The Consumer Protection Bill 2018 extensively deals with this. Product liability as defined under the Bill means the responsibility of the product manufacturer or product seller, of any product or service, to compensate for any harm caused to a consumer by such defective product manufactured or sold or by deficiency in services relating thereto. A product liability action may be brought by a complainant against a product manufacturer or a product service provider or a product seller, as the case may be, for any harm caused to him on account of a defective product.
- Unfair Contracts - There is no provision for unfair contracts under the present framework. The Consumer Protection Bill 2018 defines "unfair contract" to mean a contract between a manufacturer or trader or service provider on one hand, and a consumer on the other, having such terms which cause significant change in the rights of such consumer. The Bill identifies six types of unfair contracts, including contracts: requiring manifestly excessive security deposits; or imposing any disproportionate penalty on the consumer, for the breach of contract; or refusing to accept early repayment of debts on payment of applicable penalty; or entitling a party to the contract to terminate such contract unilaterally, without reasonable cause; or permitting or has the effect of permitting one party to assign the contract to the detriment of the other party (who is a consumer) without his consent; or imposing on the consumer any unreasonable charge, obligation or condition which puts such consumer to disadvantage.
Satark being a Consumer Club is informing everyone about
this amendment because consumers are not aware about this bill as the above
mentioned amendments are directly from the desk of ministers.
Submitted by
Vaibhav Sharma
Bsc. Mathematical sciences, 2nd year
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