The Consumer Protection Bill 2018

• 21 Dec 2018

Recently, the Lok Sabha passed The Consumer Protection Bill 2018.

• The Bill seeks to replace the three-decade-old Consumer Protection Act, 1986.

Rights of The Consumer

1. Right to Safety
2. Right to Information
3. Right to Choose
4. Right to Seek Redressal
5. Right to Education
6. Right to be Heard

Provisions in the bill

• The Bill enforces consumer rights and provides a mechanism for redressal of complaints regarding the defect in goods and deficiency in services.
• Under the Bill, Consumer Disputes Redressal Commissions will be set up at the District, State and National levels for adjudicating consumer complaints.
  • Appeals from the District and State Commissions will be heard at the next level and from the National Commission by the Supreme Court.
• The Bill sets up a Central Consumer Protection Authority to promote, protect and enforce consumer rights as a class. It can issue safety notices for goods and services, order refunds, recall goods and rule against misleading advertisements.
  • It will be headed by a Chief Commissioner and comprise other Commissioners. It will have an investigation arm headed by a Director General. It may also file complaints before the Consumer Disputes Redressal Commissions.
• The Bill establishes Consumer Protection Councils at the district, state, and national levels to render advice on consumer protection.
  • The Central and State Council will be headed by the Minister-in-charge of Consumer Affairs at the central and state level, respectively. The District Council will be headed by the District Collector.
• The Bill also lists punitive actions against those who are found manufacturing, storing, distributing, selling, or importing products that are spurious or contain adulterants.
• If a consumer suffers 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 defines contracts as ‘unfair’ if they significantly affect the rights of consumers. It also defines unfair and restrictive trade practices.
• The case can be filed from anywhere, unlike the existing law which allows the consumer to register the complaint only from the same place of purchase of the product or where the service is availed.

Provision	1986 Act	2018 Bill
Ambit of Law	All goods and services for consideration. Free and personal services are excluded.	All goods and services, including telecom and housing construction, and all modes of transactions (online, teleshopping, etc.). Free and personal services are excluded.
Unfair Trade Practices	Includes six types of such practices, like false representation, misleading advertisements.	Adds three types of practices to the list: (i) failure to issue a bill or receipt; (ii) refusal to accept a good returned within 30 days; and (iii) disclosure of personal information given in confidence
Product liability	No provision.	Claim for product liability can be made against the manufacturer, service provider, and seller. Compensation can be obtained by proving one of the several specified conditions in the Bill.
Regulator	No provision.	Establishes the Central Consumer Protection Authority (CCPA)
Pecuniary jurisdiction of Commissions	District: Up to Rs 20 lakh. State: Between Rs 20 lakh and up to Rs one crore. National: Above Rs one crore.	District: Up to Rs one crore. State: Between Rs one crore and up to Rs 10 crore. National: Above Rs 10 crore.
Appointment	Selection Committee (comprising a judicial member and other officials) will recommend members on the Commissions.	No provision for Selection Committee. The central government will appoint through notification.
Penalties	Imprisonment between one month and three years or fine between Rs 2,000 to Rs 10,000, or both.	Imprisonment up to three years, or a fine not less than Rs 25,000 extendable to Rs one lakh, or both.
E-commerce	No provision.	Defines direct selling, e-commerce and electronic service provider. The central government may prescribe rules for preventing unfair trade practices in e-commerce and direct selling.