Lok Sabha passes Bill to set up Central Consumer Protection Authority for handling complaints
A Bill to establish a national level regulator - Central Consumer Protection Authority (CCPA) - to deal with consumer complaints pro-actively was passed in the Lok Sabha on Tuesday by voice vote amid objections to several clauses.
 
Unveiling the government's argument for the passage of the Consumer Protection Bill, 2019, Union Food and Public Distribution Minister Ram Vilas Paswan said the new draft legislation was important to strengthen the consumer rights considering modern day challenges and assured that consumers' interests regarding e-commerce will be addressed.
 
Paswan said the Bill will clear the way for consumers to go to court if they were not satisfied.
 
The Bill, which seeks to replace the Consumer Protection Act 1986, has 109 clauses to establish CCPA as a national level regulator.
 
The Bill also has provisions to deal with class actions, product liability, misleading advertisements, liability for celebrity endorsements and others. It also addresses new age developments like e-commerce, direct selling and tele-marketing.
 
As per the Bill, the CCPA will deal with matters relating to violation of rights of consumers, unfair trade practice and false or misleading advertisements which are prejudicial to the interests of public and consumers.
 
According to the Minister, the CCPA will have an investigating wing headed by a Director General with powers to search and seize.
 
Several members from the treasury benches and in the opposition, including the Congress, CPI-M, AIMIM, TDP and NCP, expressed their concerns and raised objection on different clauses of the Bill.
 
Congress member Shashi Tharoor said the arbitration clause should not be allowed in consumer forum as it limits the forum's power to help consumer. 
 
"Law should take precedence over limited liability clauses. The definition of services in the Bill excludes free services," he said.
 
Tharoor pointed out that government hospitals, for example, give free services but consumers were compensated for negligence.
 
BJP's Rajiv Pratap Rudy said that telephone companies disconnect phone connections if bills were not paid. But if phones disconnect on their own due to call drops, one cannot say he or she won't pay because the department would cut the connection.
 
"Similarly, if power is not provided within 24 hours, it is my prerogative to not pay, but that option is not available. We are not able to provide protection in areas where are monopolies," he said
 
One MP called Clause 62 :a mischievous clause". "Why should the national commission intervene on the state's right to investigate the matter?"
 
NCP's Supriya Sule asked who does one turn to for food adulteration. Without naming Maggi, she asked why was it was banned and why the ban was revoked later.
 
CPI-M's Abdul Majeed expressed asked: "If the Act can provide relief to those who bought imported spurious goods, what about the loss of valuables kept in bank lockers?"
 
Opposing the Bill, AIMIM President Asaduddin Owaisi said: "You have succumbed to the medical lobby."
 
TDP's Jaydev Galla said: "Not only paid services but also free services in government hospitals should be brought under this Bill."
 
He said the Bill was also silent on surrogate advertising like those for alcohol, cigarettes and paan masala.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
Deepak Narain
6 years ago
As pointed out by various MPs, the bill suffers from many defects and these should have been addressed first before putting it to vote. Matters where government does not fulfill its own commitment and appeals to official machinery fail to redress should also be covered in this bill.
gcmbinty
6 years ago
Whether it is the present Consumer Protection Act 1986 or the new proposed Consumer Protection Authority Bill 2019, intended to replace the former, the issue is of implemented the Act in spirits and practice by the people who man the same. BJP has been long disposed to change all that the good was done by the previous regimes of the Congress.

The new proposal does not provide for (1) "not diverting the personal money of consumers lying unclaimed or un-refunded in any of the accounts to any other accounts e.g. The Finance Act 2015, Consolidated Fund of India, or the National Anti-profiteering Authority under the GST Act", (2) "not diverting the personal money of consumers recovered by any of the government agencies in the State or the Centre, including the Regulators, on account of charging more than the MRP - excluding taxes" - as has been doing in the present case of diverting the money recovered in the case of pharmaceutical industry by NPPA to the Consolidated Fund of India.

It must be noted by the consumer activists and appreciated also by the Union Food and Public Distribution Minister Ram Vilas Paswan that we are not living in the times of Rajas or British Raj or Islamic Raj, but in Democracy of the people, for the people and by the people, where any money, property or asset of any kind is left behind by the consumers of goods and services bought against payment, after demise or forgotten, or piled up in government custody because of mismanagement and bad governance cannot belong to or cannot be diverted or taken away from by the force of any legislative measures to feed the political needs of the Authority, e.g. Consolidated Fund of India, The Finance, NAA, etc., except or putting the same honesty back into the custody of Consumer Welfare Fund under the Consumer Protection Act (amended or replaced), which shall be managed by the Consumer Protection Councils under the CPA.

The consumers in India must come up and speak loudly against the anti consumer moves of the government by enacting the new consumer protection legislations, and unite.

Mr. Shashi Tharoor, Congress MP, needs to be reminded that the government hospitals do not provide any services free of cost but against the taxes and cess collected from consumers for the services. Government is not doing any obligation by giving free government hospital services.

The present amendment to CPA and its replacement is more a case of revenge against the political opposition to then regime instead of being a rational leader of the citizens.
P M Ravindran
6 years ago
...replace the Consumer Protection Act 1986? Does it mean it is being rewritten or just modified? I can vouch on the strength of my own experiences that the the three tier consumer courts were not just failures but they had actually converted the Consumer Protection Act into Consumer Persecution Act.

To give one example: as per the CPA it is the right of the consumer to know the correct details of the goods and services he is availing. The railways inflates the distance on the Konkan route (and possibly on the mountain routes too!) by 40 percent on the Roha-Thokur sector and charges the consumers fare for this inflated distance. This is in blatant violation of the CPA. I had approached the Railway Board with the suggestion that they could introduce a Konkan surcharge, if needed, but should abstain from cheating consumers. They did not agree and the even the consumer courts played foul. The cheating continues.

In government it is said that the right hand does not know what the left is doing. A similar situation prevails in the matter of sale of used cars. Many dealers are offering exchange of new vehicles for old. But they just take the old vehicle and adjust the cost against the cost of the new vehicle. However the papers of the old vehicle will be processed only when they have sold the old vehicle to another customer. It could take months and maybe years. The apex court had sometime back ruled that the owner, as per the registration document, is liable for any thing happening with the vehicle. I do not know if the new Motor Vehicles Act takes care of this problem. Does the CCPA cater for it?

Those interested in further reading may go through my blogs The crime of non-governance and quasi judicial organisations (letter to CM, Kerala of 12/1/10)
http://raviforjustice.blogspot.com/2011/04/crime-of-non-governance-and-quasi.html and Obnoxious functioning of consumer fora/commissions- letter to minister (of 8/1/11)
at http://raviforjustice.blogspot.com/2011/04/obnoxious-functioning-of-consumer.html

Free Helpline
Legal Credit
Feedback