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Current Affairs

Consumer protection bill got nod from Lok Sabha

Date: 31 July 2019 Tags: Bills & Laws

Context:
    The Lok Sabha on Tuesday passed the Consumer Protection Bill 2019, which seeks to give enhanced protection to interests of consumers and timely settlement of their grievances.

  • About the bill:
  •  
    • The new legislation will replace the Consumer Protection Act, 1986
    •  The bill provides for recall of unsafe goods and services and discontinues unfair trade practices.
  • Penalty for misleading endorsement:
  •  
    • An endorser may have to pay a penalty of up to 10 lakh and may even be barred from endorsing any product for a year.
    • Every subsequent contravention the bar may go up to 3 years.
  • Penalty for misleading endorsement:
  •  
    • An endorser may have to pay a penalty of up to 10 lakh and may even be barred from endorsing any product for a year.
    • Every subsequent contravention the bar may go up to 3 years.
  • Expansion of scope for product liability: The scope of product liability has been expanded beyond manufacturing and design defects to include:
    • Deviation from manufacturing specification

    • Failing to contain adequate instruction for correct use

    • Providing faulty, imperfect and deficient services

To deal with grievances:

  •  
    • The new Consumer Protection Bill for the first time have a mechanism spelt out for dealing with grievances of e-commerce consumers
    • To help dispose cases early, it also provides for court-directed mediation to redress grievances.
    • No appeal will be allowed on cases settled through mediation.
  • Central Consumer Protection Authority (CCPA): This body will be established with a mandate to carry out investigation into violations of consumer rights.
  •  
    • The CCPA is also empowered to impose penalties on manufacturers of unsafe goods and endorsers and publishers of misleading advertisements.