Consumer Is (Almost) King? Consumer Protection Bill Gets Lok Sabha’s Nod; Will Soon Become Law

Lok Sabha, the lower house of the Parliament, passed the Consumer Protection Bill, 2018 on Thursday (20 December), which aims to replace the decades-old Consumer Protection Act, 1986 passed by the Rajiv Gandhi government, reports Financial Express.

Union Ministry of Corporate Affairs (MCA), which drafted the bill, notes that its primary objective is “to provide for the protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes.”

One of the highlights of the bill is the provision for setting up an apex pan India regulator - Central Consumer Protection Authority - that would "promote, protect and enforce the rights of the consumer.” The 1986 Act, in contrast, does not provide for such an authority.

Apart from providing mechanisms to deal with legacy issues like class actions, product liability, misleading advertisements, liability for celebrity endorsements etc, the bill also seeks to bring new developments like e-commerce, direct selling and telemarketing under its ambit.

The bill also allows consumers to file complaints with Consumer Disputes Redressal Commission, from where the complainant resides or works. “These Commissions will be set up at district, state and national level, with pecuniary jurisdiction up to Rs one crore, Rs one crore to Rs 10 crore, and above Rs 10 crore, respectively,” the bill reads.

The bill, for it to become a law, will need the approval of Rajya Sabha and the assent of President.

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