Cabinet approves Bill seeking to make consumer the king

New Delhi: The Union Cabinet on Wednesday approved the Consumer Protection Bill, 2017, paving the way for its introduction in Parliament.

Cabinet approves introduction of Consumer Protection Bill, 2017 and withdrawal of Consumer Protection Bill, 2015; to enlarge scope of the existing Consumer Protection Act and make it more effective and purposeful.

— ANI (@ANI) December 20, 2017

Once approved by Parliament, the new law will replace the current Consumer Protection Act, 1986. The main objective of the Bill remains establishment of the mechanism for consumer protection.

It proposes to have Consumer Dispute Redressal Commissions, which will be set up at the district, state and national levels. Also, it seeks the formation of Consumer Protection Authority to investigate consumer complaints.

The Bill, originally drafted in 2015 and tabled in the Lok Sabha last year, was subsequently sent to the Standing Committee on Food and Consumer Affairs.

Highlights of the Bill

-The Bill replaces the 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.

-Consumer Dispute Redressal Commissions will be set up at the district, state and national levels for adjudicating consumer complaints.

-The Bill establishes a Consumer Protection Authority to investigate into consumer complaints, issue safety notices for goods and services, and pass orders for recall of goods and against misleading advertisements.

-If a consumer suffers an injury from a defect in a good, he may file a claim of product liability against the manufacturer.  The consumer must establish seven conditions in order to prove such a claim.

-The Bill classifies six contract terms as ‘unfair’.  These cover terms such as (i) payment of excessive security deposits; (ii) disproportionate penalty for a breach ; (iii) unilateral termination without cause; (iv) one which puts the consumer at a disadvantage.