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Lok Sabha passes Consumer Protection Bill 2019
Why is it in the news ?
- The Lok Sabha unanimously passed the Consumer Protection Bill 2019, which seeks to wholly replace the Consumer Protection Act 1986.
Key features of the Bill
- Six consumer rights have been defined in the Bill, including the right to:(1) Be protected against marketing of goods and services which are hazardous to life and property.(2) Be informed of the quality, quantity, potency, purity, standard and price of goods or services.(3) Be assured of access to a variety of goods or services at competitive prices.(4) Seek redressal against unfair or restrictive trade practices.
- Central Consumer Protection Authority:(1) The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.(2) It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.
- Penalties for misleading advertisement:(1) The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.(2) In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.
- Consumer Disputes Redressal Commission(CDRCs):(1) CDRCs will be set up at the district, state, and national levels.(2) A consumer can file a complaint with CDRCs in relation to:
(i) unfair or restrictive trade practices;
(ii) defective goods or services;
(iii) overcharging or deceptive charging; and
(iv) the offering of goods or services for sale which may be hazardous to life and safety.
- Complaints against an unfair contract can be filed with only the State and National Appeals from a District CDRC will be heard by the State CDRC.
- Appeals from the State CDRC will be heard by the National CDRC. Final appealSourcePRS India.