The Union Cabinet has approved the Consumer Protection Bill, 2017, paving the way for its introduction in Parliament. Once approved by Parliament, the new law will replace the current Consumer Protection Act, 1986. The Bill enforces consumer rights, and provides a mechanism for redressal of complaints regarding defect in goods and deficiency in services.
The new bill seeks to enlarge scope of the existing law and make it more effective and purposeful. It seeks to establish a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights. It proposes to have Consumer Dispute Redressal Commissions, which will be set up at the district, state and national levels.
It also provides for ban on celebrities for misleading advertisements and has provisions for post-litigation stage mediation as an alternate dispute resolution mechanism. The bill also provides for product liability action. The manufacture or service provider will face two to five years imprisonment, and a fine of Rs 10-50 lakh for making false or misleading advertisements. Also, the consumer can now lodge a complaint from anywhere in the country, unlike the existing law under which a consumer had to register the complaint at the same place from where the product was purchased.
In August 2015, the Centre had introduced the Consumer Protection Bill in the Lok Sabha to repeal the 30-year-old Consumer Protection Act, 1986. However, the consumer affairs ministry has brought a fresh bill as there were many amendments to the bill introduced in 2015. The Cabinet has approved introduction of the Consumer Protection Bill, 2017, leading to withdrawal of the 2015 bill.