The Union Cabinet is likely to approve a new Consumer Protection Bill 2015, that seeks to replace the existing law and proposes setting up a regulatory authority to curb unfair trade practices. Once the bill gets Cabinet approval, the Consumer Affairs Ministry will be introducing the bill in the ongoing monsoon session of Parliament.
The new bill, which will repeal the 29-year-old Consumer Protection Act, seeks to create a Consumer Protection Authority on the lines of the US and European countries for fast-tracking redressal of consumer grievances. 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 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'.
As per the new bill, 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. For speedy disposal of consumer court cases, the bill seeks to provide 'mediation' as an alternative route to resolve the disputes and also suggests simplified judicial process to ensure inexpensive justice.
Earlier, Union Consumer Affairs Minister Ram Vilas Paswan had said that the government is planning to make consumer forums simpler so that one does not need a lawyer for presenting the case. He had also said that to ensure speedy, inexpensive and simple dispensation of justice for the consumers, the government has also decided to set up a National Consumer Protection Authority (NCPA) with all the executive and enforcement powers for redressal of consumer grievances and to take penal action against defaulting companies.
