Government revamping consumer protection law: Minister

NEW DELHI: The government is revamping the consumer protection law to safeguard consumers in view of new challenges posed by e-commerce, direct selling and multi-level marketing sectors.

This was stated by C R Chaudhary, Minister of State for Consumer Affairs, at a session on 'Report on national and regional implementation of the United Nations Guidelines for consumer protection' at Geneva.

"The emergence of global supply chains, lowering of trade barriers, rise in international trade and the rapid development of e-commerce have enhanced the vulnerability to new forms of unfair trade and unethical business practices," an official statement quoted him as saying.

Misleading advertisements, tele-marketing, multi-level marketing, direct selling and e-tailing pose new challenges to consumer protection, the minister added.

Chaudhary emphasised that appropriate, swift and effective executive interventions are needed to prevent consumer detriment.

"We are, therefore, almost rewriting our existing Consumer Protection Act, 1986 with a view to safeguard and strengthen the rights of our consumers," the minister said.

The new Consumer Protection Act is being drafted with features that include simpler adjudication process; mediation as an alternative dispute resolution mechanism; product liability; and a central consumer protection authority (CCPA) to deal with unfair trade practices.

A new Consumer Protection Bill has already been introduced in the Lok Sabha to repeal the 30-year-old Consumer Protection Act.