Centre plans law to empower consumers
The government is framing a law to empower consumers to sue manufacturers and service providers, who dupe them by concealing information that could influence their purchase decisions.
By Rajat Guha & Subhash Narayan, ET Bureau |
NEW DELHI: The government is framing a law to empower consumers to sue manufacturers and service providers, who dupe them by concealing information that could influence their purchase decisions. Under the proposed law, such companies will also be prosecuted for not issuing receipts of purchases. As per a Cabinet note, the penalty will be equal to the value of the product or the service, along with the interest. The note proposes to amend the Consumer Protection Act 1986.
A government official said, a patient can sue his doctor for withholding information and forcing him to go for an unnecessary surgery. Similarly, a telecom service provider, who mislead subscribers through hidden charges while advertising schemes, can also be sued.
The proposed move will also define ���unfair contract��� to protect the weaker party from incurring losses arising out of such unfair trade practices. The Consumer Protection (Amendment) Bill 2008, will replace the Consumer Protection Act, 1986, which will help faster disposal of consumer cases, said a senior government official associated with the drafting of the Bill.
Every complaint would be heard by consumer forums on a day-to-day basis. As of now, there is a huge gap between the time a case is filed and the time it comes up for hearing. The Bill also says that any request for adjournment of a case would have to be accompanied with genuine reasons. It has also reduced the time-frame for serving a notice to the accused from 21 days to 14 days.
A government official said, a patient can sue his doctor for withholding information and forcing him to go for an unnecessary surgery. Similarly, a telecom service provider, who mislead subscribers through hidden charges while advertising schemes, can also be sued.
The proposed move will also define ���unfair contract��� to protect the weaker party from incurring losses arising out of such unfair trade practices. The Consumer Protection (Amendment) Bill 2008, will replace the Consumer Protection Act, 1986, which will help faster disposal of consumer cases, said a senior government official associated with the drafting of the Bill.
Every complaint would be heard by consumer forums on a day-to-day basis. As of now, there is a huge gap between the time a case is filed and the time it comes up for hearing. The Bill also says that any request for adjournment of a case would have to be accompanied with genuine reasons. It has also reduced the time-frame for serving a notice to the accused from 21 days to 14 days.
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