Introduction
The Central Government passed the ‘Consumer Protection Bill, 2019’ (‘Bill’ for short) in the Lok Sabha on 30.07.2019 which is going to repeal the existing Consumer Protection Act, 1986. The said bill is yet to be passed in Rajya Sabha and also to get the assent of the President of India and to be notified in the Official Gazette after getting the assent of the President of India.
Object of the Bill
The object of the Bill is-
- to provide for protection of the interests of the consumers;
- to establish authorities for timely and effective administration and settlement of disputes of consumers.
Central Authority
The Bill proposes to establish by the Central Government, by means of a notification, an authority called as ‘The Central Consumer Protection Authority’ (‘Central Authority’ for short) to-
- regulate the matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of the public and consumers; and
- promote, protect and enforce the rights of consumers or a class.
The Central Authority shall consist of a Chief Commissioner and such number of Commissioners as may be prescribed. Such members are to be appointed by the Central Government.
Date of effect
The Central Authority will start function with effect from such date as the Central Government may specify in the notification.
Headquarters
The Head quarters of the Central Authority shall be at New Delhi. It shall have other Regional Offices and other offices in any other place in India as the Central Government may decide.
Powers of Chief Commissioner
The Central Government shall regulate the procedure for transaction of its business and allocation of its business amongst the Chief Commissioners or Commissioners as may be specified in the regulations.
The Chief Commissioner shall have the powers of general superintendence, direction and control in respect of all administrative matters of the Central Authority. The Chief Commissioner may delegate his powers to the Commissioners or other officers in the headquarters or in regional offices.
Investigation wing
The Central Authority shall have an investigation wing. It will be headed by the Director General. The Central Government may appoint Director General or such number of Additional Director General, Director, Joint Director, Deputy Director and Assistant Director. The inquiries or investigations made by the investigation wing shall be submitted to the Central Authority within such time and in such manner.
Role of District Collector
The District Collector, on receipt of a complaint or on a reference made to him by the Central Authority, inquire into or investigate complaints regarding violation of rights of consumers within his jurisdiction and to submit a report to the Central Authority.
Making a complaint
A complaint relating to violation of consumers rights or unfair trade practices or false or misleading advertisements which are prejudicial to the interests of consumers as a class, may be forwarded either in writing or in electronic mode to any one of the authorities namely District Collector, Commissioner of Central Authority or regional offices of the Central Authority.
Obligations
The Central Authority shall-
- protect, promote and enforce the rights of the consumers as a class and prevent violation of consumer rights;
- prevent unfair trade practices and ensure that no person engages himself in unfair trade practice;
- ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of the Act or the rules made there under;
- ensure that no person takes part in the publication of any advertisement which is false or misleading.
Functions of the Central Authority
The Central Authority may-
- inquire or cause an inquiry or investigation to be made into violations of consumers rights or unfair trade practices, either suo motu or on a complaint received or on the directions of the Central Government;
- file complaints before the District Commission or the State Commission or the National Commission;
- intervene in any proceedings before any of the Commission in respect of any allegation of violation of consumer rights or unfair trade practices;
- review the matters relating to, and the factors inhibiting enjoyment of consumer rights, including safeguards provided for the protection of consumers under any other law for the time being in force and recommend appropriate remedial measures for their effective implementation;
- recommend adoption of international covenants and best international practices on consumer right to ensure effective enforcement of consumer rights;
- undertake and promote research in the field of consumer rights;
- spread and promote awareness on consumer rights;
- encourage non government organizations and other institutions working in the field of consumer rights to co-operate and work with consumer protection agencies;
- mandate the use of unique and universal goods identifiers in such goods, as may be necessary, to prevent unfair trade practices and to protect consumers’ interest;
- issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services;
- advise the Ministries and Departments of the Central and State Governments on consumer welfare measures;
- issue necessary guidelines to prevent unfair trade practices and protect consumers’ interest.
Powers of the Central Authority
The following are the powers given to the Central Authority by the Bill-
- To refer the matter for investigation or to other regulations-
- The Central Authority may, on receipt of any information or complaint or directions from the Central Government or of its own motion, conduct a preliminary enquiry as to whether there exists a prima facie case of violation of consumers’ rights or any unfair trade practice or any false misleading advertisement, by any person, which is prejudicial to the interests of public and consumers it shall cause investigation to be made by Director General or District Collector.
- If such matter is to be dealt with by a Regulator established under any other law for the time being in force, the Central Authority may refer such matters to the concerned Regulator along with its report.
- For the purposes of investigation, the Central Authority or the Director General or the District Collector may call upon the person against whom the complaint is made and also direct him to produce any document or record in his possession.
- The investigating authority is having power to-
- enter at reasonable time into any such premises and search for any document or record or article and seizure such document or record or article;
- make a note or an inventory of such record;
- require any person to produce any record, register or other document or article.
- If the Central Authority is satisfied that there is sufficient evidence to show violation of consumer rights or unfair trade practice, it may pass such order as be necessary including-
- recalling of goods or withdrawal of services which are dangerous, hazardous or unsafe;
- reimbursement of the prices of goods or services so recalled to purchasers of such goods or services; and
- discontinuation of practices which are unfair and prejudicial to consumers’ interest
Before passing such order, the concerned person shall be given reasonable opportunity of being heard.
- If the Central Authority is satisfied that any advertisement is false or misleading, it may by order, issue directions to the concerned trade or manufacturer or endorser or advertiser or publisher to discontinue such advertisement or to modify the same in such manner and within such time as may be specified in the order.
- The Central Authority may impose penalties in respect of such false or misleading advertisements, by a manufacturer or an endorser which may extend to ₹ 10 lakhs. If the contravention is repeated the penalty may be imposed up to ₹ 50 lakhs.
- The Central Authority may, by order, prohibit the endorser of a false or misleading advertisement from making endorsement of any product or service for a period which may extend to 1 year. For subsequent contravention the prohibition may be extended to 3 years. No endorser shall be liable to penalty if he has exercised due diligence to verify the veracity of the claims made in the advertisement regarding the product or services being endorsed by him.
- If any person is found to publish, or is a party to the publication of a misleading advertisement, the Central Authority may impose penalty on such person which may extend to ₹ 10 lakhs. No person shall be liable for penalty if he proves that he had published or arranged for the publication of such advertisement in ordinary course of his business. No such defence shall be available if he had previous knowledge of the order passed by the Central Authority for withdrawal or modification of such advertisement.
- While imposing the penalty, the Central Authority has to consider the following-
- the population and the area impacted or affected by such offence;
- the frequency and duration of such offence;
- the vulnerability of the class of persons likely to be adversely affected by such offence; and
- the gross revenue from the sales effected by virtue of such offence.
Appeal
A person aggrieved by any order passed by the Central Authority may file an appeal to the National Commission within a period of 30 days from the date of receipt of such order.
