Highlights of Consumer Protection Bill
Salient Features of the Bill
1.Central Consumer Protection Authority (CCPA): Executive Agency to provide relief to a class of consumers. The CCPA will be empowered to-
Conduct investigations into violations of consumer rights and institute Complaints /Prosecution Order recall of unsafe goods and services
Order discontinuance of Unfair Trade Practices and Misleading Advertisements
Impose penalties on Manufactures /Endorsers /Publishers of Misleading Advertisements
2.Simplified Dispute Resolution process
i) Pecuniary Jurisdiction enhanced to-
District Commission –Up to Rs1 crore
State Commission- Between Rs1 crore and Rs 10 crore
National Commission –Above Rs.10 crore
ii) Deemed admissibility after 21days of filing
iii) Empowerment of Consumer Commission to enforce their orders
iv) Appeals only on question of law after second stage
v) Ease of approaching consumer commission
Filing from place of residence
E-filing
Videoconferencing for hearing
3.Mediation
An Alternate Dispute Resolution (ADR) mechanism
Reference to Mediation by Consumer Forum wherever scope for early settlement exists and parties agree for it.
Mediation cells to be attached to Consumer Forum No appeal against settlement through mediation
4. Product Liability
A manufacturer or product service provider or product seller to be responsible to compensate for injury or damage caused by defective product or deficiency in services
The Basis for product liability action will be:
Manufacturing defect
Design defect
Deviation from manufacturing specifications
Not conforming to express warranty
Failing to contain adequate instruction for correct use
Services provided arefaulty, imperfect or deficient
New Bill- Benefit to Consumers
Presently Consumer only have a single point of access to justice, which is time consuming. Additional swift executive remedies are proposed in the bill through Central Consumer Protection Authority (CCPA)
Deterrent punishment to check misleading advertisements and adulteration of products
Product liability provision to deter manufacturers and service providers from delivering defective products or deficient services
Scope for early disposal of cases through mediation
Provision for rules for new age consumer issues: e-commerce & direct selling
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