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Henceforth no one can cheat consumers! Here’s how Modi Govt put an end to 32 year old Act to make consumers the king

Since the time Prime Minister Modi Government has acquired power it has worked for all the sections of society. Any decision by the Government aims at only one thing welfare of people

Strengthening its aim further now Prime Minister Modi led Government has passed an act for the welfare of consumers which will replace the 32 year old act and will empower people against any kind of fraud

Yes, I am talking about new “Consumer Protection Bill” passed by the Government which will strengthen the rights of consumers and provide a mechanism for redressal of their complaints regarding defects in goods and deficiency in services

This act replaces the Consumer Protection Act 1986 and calls for strict punishment, including jail terms and hefty fines for misleading advertisements and food adulteration.The fraudster shall be punished with imprisonment for a term which may extend to two years and with fine which may extend up to 10 lakh rupees. Further offences may lead to a jail term of 10 years and a fine of up to Rs 50 lakh.

The Consumer protection bill has numerous provisions that will empower consumer commissions as well as administration to ensure justice can reach the door of the consumer in time i.e. reduce the cost and time of litigation

The authority named Central Consumer Protection Authority (CCPA) will be created which will handle the manufacturers and traders whom the small consumer could not. The CCPA will take action on behalf of the consumers at large.

Under the new law, the district forum could take on consumer complaints for compensation up to Rs 1 crore and state forum threshold is more than Rs 1 crore but not more than Rs 10 crore and the national forum would entertain claim exceeding Rs 10 crore. CCPA will ensure that delivery is on time with quality.

The Bill introduces a new concept of class action, which means the liability of manufacturers and service providers will not be limited to one or a group of consumers but towards all consumers. All affected consumers become beneficiaries in a class action suit

The new bill will take into account e-commerce too. It will allow Central government to regulate e-commerce and direct selling among other important measures. E-commerce firms would have to disclose their business details and seller agreements, apart from also disclosing how they use consumer data. The Bill deems e-commerce platforms as service providers instead of only intermediaries, thus increasing their liability

The bill has been passed in LokSabha. Now it will be sent to Rajyasabha for its approval

For more details you can read here


Credits :India Report Card

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