consumer bill

Consumer Protection Bill 2018 | Burning Issues | Free PDF

Why in NEWS?

  • The Lok Sabha passed the Consumer Protection Bill 2018, which seeks to wholly replace the Consumer Protection Act 1986.
  • The Bill seeks to establish a national level regulator -Central Consumer Protection Authority- to deal with consumer complaints on a proactive measure. The present law does not have a regulator.
  • Also, the Bill contains key provisions dealing with class actions, product liability, misleading advertisements, liability for celebrity endorsements etc. The Bill also addresses new age developments like e-commerce, direct selling, tele-marketing etc

 Requirement

  • New market dynamics
  • Misleading advertisements
  • e- commerce
  • No law for penal steps
  • Administrative issues
  • Consumer Rights
  • Product liability

Provisions of the bill

  • Executive agency, the Central Consumer Protection Authority (CCPA).
  • To tackle misleading advertisements
  • To file complaints electronically.
  • Product liability
  • Will act as a deterrent for manufacturers
  • Consumer dispute resolution
  • Consumer Mediation Cells
  • Celebrity endorsement
  • The bill has provided for a fine of up to Rs 50 lakh for celebrities appearing in misleading advertisements

Comparison of the Consumer Protection Act, 1986 with the Consumer Protection Bill, 2018

  • Ambit of law
  • Unfair trade practices (Defined as deceptive practices to promote the sale, use or supply of a good or service.)
  • Product liability
  • Unfair contracts
  • Central Protection Councils (CPCs)
  • Regulator
  • Appointment
  • Alternate dispute redressal mechanism
  • Penalties
  • E-commerce

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