Cabinet likely to clear stricter consumer protection bill

NEW DELHI: 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 with power 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 inquire 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. "The consumers will be allowed to file cases from the place of stay or work against the present practice of filing such cases at place where a product was bought. Consumers can also file cases through electronic mode," said an official.

Moreover, the members of district commissions will be selected by state public service commissions after conducting tests. At present, there are examples of politicians, housewives and social workers getting such postings.

The other key changes include allowing consumers to fight their cases himself or through a recognized agent or an advocate. Affidavits and documents submitted in the commissions will be enough for deciding the case rather than insisting on personal appearance.