Cabinet set to clear stricter consumer protection bill today
New Delhi:
TNN
The Cabinet is likely to clear the Consumer Protection Bill on Wednesday with provisions to make manufacturers and service providers liable for their products and services.
It will also set up an authority to look into complaints, investigate and even order recall of unsafe products and order compensation to buyers. The executive authority to protect consumer interest will be in addition to the existing consumer forums, which will be further strengthened.
The proposed bill will replace the 29-year-old law -Consumer Protection Act 1986. E-commerce and any online transaction for buying or selling of products or services will be under the ambit of the new law. Sources said establishment of a central consumer protection authority (CCPA) will prove a game changer as the executive agency will have the power to in quire into violations of consumer rights, unfair trade practices and false or misleading advertisement. It will also have the power to conduct search and seizure of documents. “The authority can order discontinuation of unfair practices, order reimbursement for faulty products and can issue corrective advertisements,“ said a source.
The authority will also be empowered to impose fine and declare terms of contracts as “null and void“ which are unfair to consumers. It will also protect consumers who are placed in an “unequal bargaining capacity“.
The major changes proposed to make consumer forums (to be known as commissions) at district, state and national levels include increasing the number of members for faster disposal of complaints.
