LS passes consumer protection bill

New Delhi: Lok Sabha on Tuesday passed a bill which seeks to strengthen rights of consumers and provides a mechanism for redressal of complaints regarding defects in goods and deficiency in services.

The Consumer Protection Bill 2018 provides for protection of interests of consumers and setting up of authorities for timely and effective administration and settlement of consumer disputes.

Speaking on the bill, Union Food and Consumer Affairs Minister Ram Vilas Paswan stressed that the overall purpose of the legislation is to ease the process of addressing grievances of consumers.

The bill, which will replace the Consumer Protection Act, 1986, was passed in the lower house after all the amendments moved by opposition were negated.

The bill will now go to Rajya Sabha for passage, where it was not passed in December last year and had lapsed.

The bill, among other things, proposes setting up of Consumer Disputes Redressal Commission and forums at the district, state and national levels for adjudicating consumer complaints.

It also seeks to set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights as a class.

The CCPA would make interventions to prevent consumer detriment arising from unfair trade practices.

The agency can also initiate class action, including enforcing recall, refund and return of products.

"Currently, the task of prevention of or acting against unfair trade practices is not vested in any authority.

"This has been provided for in a manner that the role envisaged for CCPA complements that of sector regulators and duplication, overlap or potential conflict is avoided," as per Statement of Objects and Reasons of the bill, which was introduced by Paswan on July 8. Paswan said CCPA would take immediate action on any complaint filed by the consumer and if required could also file class action suite.

He said this bill proposes stringent action in case of misleading advertisements against the advertiser but not against the media through which advertisement is being publicised. The bill also has provisions for product liability action on account of harm caused to consumers due to defective products or by deficiency in services.

During the debate on the bill, BJP MP Rajiv Pratap Rudy suggested that cases of call drops and power cuts should also be considered under the ambit of this proposed law.

Opposing the bill, Congress member M K Vishnu Prasad claimed it would curb the freedom of consumers and trample on their rights."The real problems of consumers must be heard," he said, adding the government must bring a comprehensive bill in this regard.

Prasad alleged that the government has been passing bills without sending them to standing committees. DMK member K Veeraswamy said the bill provides for "feudal rule, not federal rule" and it will take away consumer rights. He alleged the government has been treating the opposition "as enemy parties and not as opposition".

"You want all powers with the central government and not with the states," he said.

Pratima Mondal of Trinamool Congress claimed that the intention of the bill is to encroach upon powers of the state.

"Consumer protection is a sensitive matter and it should be dealt with caution," she said.

Supporting the bill, Chandreswar Prasad of the JD-U described the bill as "very significant" saying it will protect the rights of consumers.

This is a non-controversial bill which will ensure welfare of the consumers, he said.

Prasad said a consumer can lodge a complaint even from home without taking help of lawyers. Supporting the bill, BJD member Ramesh Chandra Majhi said the bill will ensure protection of consumers rights.

Majhi, however, sought clarifications on a few issues including composition of district consumer forums and how the long list of pending consumer cases across the country will be disposed of.

BSP member Girish Chandra demanded that provisions should be made in the bill to make district consumer forum heads accountable.

Chandra also spoke about prevalence of adulterated goods in the market and protection of rights of electricity consumers.