CONSUMER PROTECTION ACT 2015

There has been tremendous rise in e-commerce globally and the number of Indians preferring to shop conveniently ,choosing from wide range available at their fingertips through their smart phones. Nobody wants to bother to go to the conventional stores when same thing is available at home and at the lower price.

Though this e-shopping has given consumers better option, there have also been cases that demand immediate attention towards regulation of e-business. Retail giant Flip kart’s Big Billion Day Sale last year was one such case where promises were not fulfilled and the owners had to publically apologize. This since has triggered the debate on new consumer protection bill to prevent a repeat of the problems. The Indian Cabinet on Wednesday approved a new Consumer Protection Bill 2015 that seeks to replace a 29-year-old law and proposes to set up a regulatory authority which will have powers to recall products and initiate class suit against defaulting companies, including e-retailers. This bill is proposed to be laid in the ongoing session of parliament. Bill provides for a comprehensive framework for protection of consumer interest and will replace the Consumer Protection Act, 1986 .The 1986 slogan “Jago Grahak Jago” is a household name and has played a very important role in creating awareness about consumer rights through publicity campaigns. The Consumer Protection Act 1986 was amended thrice earlier in 1991, 1993 and 2002 ,but with changing scenario it has become difficult  to cover all the new dimensions under this and hence a new act had to be proposed.

PROVISIONS:

1) New bill include establishment of an executive agency ‘Central Consumer Protection Authority’ (CCPA) which will protect and enforce the rights of consumers. The authority will intervene when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products.

2) Bill has provisions for “product liability” if product/services causes personal injury, death or property damage and will take action against defaulting manufacturers or service providers.

3) For speedy disposal of court cases, the bill proposes “mediation” as an alternative dispute resolution mechanism. The mediation will be under the supervision of consumer courts. Also consumers will be able to file complaints electronically circuit bench along with traditional mechanism of filing complaints in consumer courts that have jurisdiction over the place of residence.

4) The Bill also provides for stringent penalty for misleading advertisements, tele-marketing, multi-level marketing, direct selling and e-tailing ,including life imprisonment in certain cases.

5) Need for such a strong bill was strongly felt after the recent Maggi controversy which brought the issue of consumer grievance redressal back into the limelight. 
Author: Palak Tiwari, a freelancer writer based in Bhopal

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