Consumer Protection Bill 2018. read the complete analysis .

Recently, Lok Sabha has passed Consumer Protection Bill, 2018 which enforces customer rights and provides for redressal of complaints regarding deficiencies in goods and services.The Consumer Protection Bill will become law once it goes through the Rajya Sabha.

 Consumer Protection Bill, 2018

The Bill, originally introduced in January 2018, seeks to replace the three-decade-old Consumer Protection Act, 1986.Need of the new bill: Consumer Protection Act, 1986 was amended thrice but is still found wanting in tackling the challenges posed by online transactions, and tele-, multi-level, and digital marketing.The objective of the Bill : to provide for the protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes.

What are Consumer rights?

The Bill defines “consumer rights" as the right to be protected against the marketing of goods, products or services which are hazardous to life and property.It is also the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services; and to be assured of access to a variety of goods, products or services at competitive prices.It also includes the right to be heard and to be assured that the consumer’s interests will receive due consideration at appropriate fora; to seek redressal against unfair or restrictive trade practices or unscrupulous exploitation of consumers; and the right to consumer awareness.

Some Features of the Bill

The Bill enforces consumer rights, and provides a mechanism for redressal of complaints regarding defect in goods and deficiency in services.The Bill seeks to set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of the consumers.The CCPA can act on complaints of unfair trade practices, issue safety guidelines, order product recall or discontinuation of services, refer complaints to other regulators, and has punitive powers such as imposing penalties.The Bill also seeks to provide Consumer Disputes Redressal Commissions at national, State and district-levels to look into consumer complaints.Consumer Protection Councils will also be set up at the district, State, and national level, as advisory bodies.Consumer mediation cells will be set-up on the same lines.If a consumer suffers an injury from a defect in a good or a deficiency in service, he may file a claim of product liability against the manufacturer, the seller, or the service provider.The Bill defines contracts as ‘unfair’ if they significantly affect the rights of consumers. It also defines unfair and restrictive trade practices.The financial jurisdiction of the District Consumers Courts has been increased: they can deal with complaints involving ₹1 crore as against the ₹20 lakh earlier.Under the clause of product liability, a manufacturer will be liable to compensation for products with defects.

 Issues and Analysis

The Bill sets up the Consumer Disputes Redressal Commissions as quasi-judicial bodies to adjudicate dispute, but does not specify that the Commissions will comprise a judicial member. If the Commissions were to have members only from the executive, the principal of separation of powers may be violated.The Bill empowers the central government to appoint, remove and prescribe conditions of service for members of the District, State and National Consumer Disputes Redressal Commissions. It leaves the composition of the Commissions to the central government. This could affect the independence of these quasi-judicial bodies.Consumer Protection Councils will be set up at the district, state, and national level, as advisory bodies. The Bill does not specify whom the Councils will advise. If the Councils advise the government, it is unclear in what capacity such advice will be given.