Consumer protection bill 2018
On 20th December
2018, the consumer protection bill passed by the lower house of India, the bill
will 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.
What problems consumers are facing?
Consumer rights are not well implemented at present. Consumers get easily exploited in various ways, even after a
lot of acts and rules have been passed.
The main problem faced by
consumer is lack of awareness about their rights and the mechanism to get justice. The consumer doesn’t even know the sources of
getting information. Most of the consumers in urban and remote areas are
illiterate and they are not able to understand the policies of the company,
organization or the government.
Most of the time consumers don’t get authentic and a good quality product even after paying a higher price of
the product.
Especially in India consumers are exploited on a large number by seller. Sellers create fake scarcity just to
sell the product in higher prices.
Consumers are unaware and
leave money due to helplessness on the seller and this helplessness has been taken for granted by the seller.
Why Indian government replaced
consumer protection Act 1986?
Consumer protection Act 1986
is one of the World’s most outstanding and simple enactments by Indian
government. Not many countries have a law that is so simple, however, there are some limitation
in the Act-
1 – Services come within this
act for which specific payment is made, such as electricity, telephones,
banking, etc. Thus the doctors as well as hospitals including those where
treatment is given free such as government hospitals do not come within the ambit
of Act.
2- Also the mandatory civil
services, such as sanitation, water supply, etc. provided by the state or local
authorities are not covered by the Act.
3 – The consumer protection
(Amendment ACT, 1993) incorporated two Claus regarding supply of hazardous
good, but it did not impose a strict liability on those who supply such goods.
4 – The consumer protection
Act, 1986, does not give any definition of safety requirements and permitted
hazard levels.
5 – Under the Act a consumer
can seek redressal only if he/she has suffered damage as result of the
unfair trade practice or deficiency in service or the unfair trade practices
resorted to by a trader.
6 – The Act does not empower
consumer fora to publish the names of manufacturer’s trader, and dealers whose
good are found to be hazardous to public safety.
7 – The Act does not permit a
consumer to file a complaint with the consumer forum if alternative remedy is
available under some other law.
8- The Act specifies a time
frame within which the dispute is to be disposed. The period specified is 90
says, but the actual time taken is much longer. In some cases, the complainants
waited for about two years, attended the consumer court several time before
they were able to understand that the courts would not be able to handle their cases.
Key features and changes in the
consumer protection bill 2018
The bill
introduces provisions related to product liability and unfair contacts. It also
creates a regulatory body called the central consumer protection Authority and permits
meditation for settlement of consumer complaints.
1 - The consumer disputes redressal commissions will be set up at district, state and nationals levels as per the
bill passed.
2- District commissions will
have the mandate to hear complaints having claim worth one core rupees. In the
consumer protection Act, 1986 this limit was 20 lakh rupees.
3 – The limit of the
commissions at the state level enhanced from 1 crore rupees to 15 crore rupees.
4 – Complaints above 15 crore
rupees worth of claim will be settled by the National Commission.
5- The consumer protection
Bill, 2018 has provisions for stringent punishments in the matters of food
adulterations.
6- The Bill has the
provisions to protect those consumers who use new digital technologies like e-commerce
and online shopping.
Since when consumer protection
rights are exists
Consumer protection has been practiced in India since ancient time but it is accelerated due to various
issues. In India, different Acts have been implemented to protect the consumers
against different forms of mistreatment that include:-
-
Indian contract
Act 1872
-
Drug control Act.
1950
-
Industries (Development
and regulation) Act 1951
-
Indian standards
institution ( certification marks) Act 1952
-
Drug and magic
remedies ( objectionable Advertisement) Act 1954
-
Prevention of
food Adulteration Act 1954
-
Essential commodities
Act 1955
-
Trade and merchandise
Marks Act 1958
-
Consumer protection
Act, 1986
picture courtesy :- emaze.com
Role of voluntary organizations in protection of consumers Rights?
There
has always been a significant contribution of such organization for the welfare
of consumers. Consumer’s organizations are support groups that seek to protect
people from corporate abuse. Unsafe products, predatory lending, false
advertising, and pollution are types of corporate abuse. Consumer organizations
may operate via remonstration, campaigning or lobbying. Voluntary organizations
have major contribution for implementation of consumer rights and serve the
consumer better.
It has been estimated that there are now more than 800 such organizations working in India. They conduct various activities as part of the consumer movement. They perform several functions such as creating awareness about consumer's rights and teaching the general public about consumer difficulties and remedies through seminars, workshops, and training programs.
These voluntary organizations provide legal help to consumers by way, of assistance in seeking legal solution, undertake advocacy of consumers’ point of view as representative members of consumer protection council and others official boards. In India, government encourages voluntary organization to promote healthy and mass based consumer movement in urban and rural areas.
It has been estimated that there are now more than 800 such organizations working in India. They conduct various activities as part of the consumer movement. They perform several functions such as creating awareness about consumer's rights and teaching the general public about consumer difficulties and remedies through seminars, workshops, and training programs.
These voluntary organizations provide legal help to consumers by way, of assistance in seeking legal solution, undertake advocacy of consumers’ point of view as representative members of consumer protection council and others official boards. In India, government encourages voluntary organization to promote healthy and mass based consumer movement in urban and rural areas.
Importance
of consumer protection
Markets
are over flooded with products. The products may be adulterated and may be hazardous for health. This may endanger their life and due to this a consumer needs
to be protected. Consumer protection is very important in terms of avoiding
monopoly.