What is Central Consumer Protection Authority? Provisions in Consumer Protection Bill (Important)

The Consumer Protection Bill, 2018 was introduced by the Minister of Consumer Affairs, Food, and Public Distribution on January 5,2018 to replace the Consumer Protection Act, 1986. A Consumer Protection Bill was first introduced in 2015, but was withdrawn post the introduction of the 2018 Bill.

Consumer Affairs Authority (CAA)

Central Consumer Protection Authority (CCPA) : Key Features of the 2018 Bill

  • Establishment of an executive agency- the Central Consumer Protection Authority (CCPA) to
  • promote, protect and enforce the rights of the consumers
  • Investigate, recall, refund and impose penalties
  • Provide product liability action in cases of personal injury, death, or property damage caused by or resulting from any product;
  • Mediate as an Alternate Dispute Resolution (ADR) making the process of dispute adjudication simpler and quicker
  • Have an investigation wing, headed by a Director-General to inquire or investigate violations.
  • Issue directions to the concerned trader⟋manufacturer⟋endorser⟋advertiser⟋publisher to either discontinue a false or misleading advertisement, or modify it
  • Impose penalties
  • Issue safety notices to consumers against dangerous or unsafe goods and services.
Consumer Protection

CCPA Definition of Consumer

  • A person who buys any good or avails a service for a consideration.
  • Does not include a person who obtains a good for resale or a good or service for commercial purpose.
  • Includes transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing, or direct selling.

What Are the Rights of Consumer According to the Consumer Protection Bill (Important) ?

The consumer rights have been defined in the Consumer Protection Bill as

  • To be protected against marketing of goods and services which are hazardous to life and property
  • To be informed of the quality, quantity, potency, purity, standard, and price of goods or services
  • To be assured of access to a variety of goods or services at competitive prices,
  • To seek redressal against unfair or restrictive trade practices.

What is Consumer Disputes Redressal Commission?

  • Consumer Disputes Redressal Commissions (CDRCs) are to be set up at the district, state, and national levels.
  • A consumer could file a complaint with CDRCs in relation to:
    • unfair or restrictive trade practices
    • defective goods or services
    • overcharging or deceptive charging
    • offering of goods or services for sale which may be hazardous to life and safety
  • Complaints against an unfair contract can be filed with only the State and National CDRCs.
  • Appeals from a District CDRC will be heard by the State CDRC.
  • Appeals from the State CDRC will be heard by the National CDRC.
  • Final appeal will lie before the Supreme Court.

Examrace Team at Aug 21, 2021