Govt to bring tougher consumer law in Winter Session

Tired of tepid response from manufactures or service providers for addressing complaints against substandard products and poor services? Wait till this Winter Session. A new law is being planned to deal with such unfair practices and would also bring the e-commerce players in its ambit. 

The proposed Bill will replace the Consumer Protection Act, 1986. The erstwhile Act has no provision of jail term but it talks of compensation, which is also there in the new legislation and it would be implemented through the Consumer Regulatory Commission.

The final decision in this regard would be taken at the Group of Ministers meet scheduled on Tuesday (August 30). The move would be a remarkable one as e-commerce players and middlemen have been brought under the ambit of the legislation apart from manufacturers, service provides, etc. 

The Bill, which has been reviewed by Parliamentary Standing Committee, would be tabled in the Cabinet after the GoM. The Parliamentary Panel has approved 77 amendments to make it fool-proof and in the interest of consumers. According to official sources, the consumers have been entrusted with more power to bring things in order if they get substandard products and special attention has been laid on the product’s safety. “The new Bill has the provision of huge penalty on befooling consumers even through misleading advertisements. Huge penalties have been imposed on offenders. For the first offence, the offender would face two years of rigorous imprisonment and Rs 10 lakh as penalty.”

A provision of five years jail term and Rs 50 lakh fine has been approved for all offenders committing the offence for the second time, a official said, adding that no excuses would be considered even if there is a third party involvement in the whole episode. Given that e-commerce, direct selling and multi-level marketing are on the rise, complaints are also increasing, the proposed bill has laid special stress on it.

“When it comes to issues like consumers safety, there have not been any stringent laws in the country. Punishment is necessary to send a clear message to offenders that mind your steps or face the music for committing any mistake. Stringent punishment is always welcome,” said Pushpa Girimaji, a noted consumer rights columnist.

Commenting on misleading advertisement clause, Advertising Standards Council of India’s general secretary Shweta Purandare said: “It’s a welcome move as a larger section of consumers get attracted by ads. The proposed law will give impetus to fair advertising practices.”