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New Consumer Protection Bill to get delayed, panel's term extended

30 Nov 2015 Evaluate

In order to strengthen the bill further to protect the interests of the consumer, the Parliamentary Committee on Food, Consumer Affairs and Public Distribution has given an extension to submit its report on the Consumer Protection Bill, 2015 up to the first week of Budget Session of Parliament, 2016. As a result the passage of a bill which seeks to set up a regulatory authority having powers to recall products, cancel licences of defaulting companies and initiate class action suit, is set to be delayed.

Defending the extension, the committee chairman, J C Divakar Reddy said that the since adulteration of products is a major issue, he would like to recommend criminal action against sellers and manufacturers of such products. He further said “For such a big recommendation, we need to work hard with all facts.”

Once the standing committee submits its report, the department of consumer affairs will have to approach the Union Cabinet again with the recommendations made by the panel. Moving amendments, if any, based on the recommendations of the panel and pushing for the passage of the bill in both Houses during the session could prove to be a daunting task for the government as Budget sessions usually have a heavy legislative agenda.

The bill was earlier introduced in the Lok Sabha in August, seeking to create a ‘consumer protection authority’ which will also have the power to initiate class suit against defaulting companies to fast-track the redress of consumer grievances. The new bill, approved by the Cabinet on July 28, provides for a comprehensive framework for protection of consumer interest and will replace the Consumer Protection Act, 1986. The bill comes against the backdrop of emergence of complex products and services in the era of growing e-commerce in India that has rendered consumers vulnerable to new forms of unfair trade and unethical business practices.


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