3/25/2017

CONSUMER PROTECTION BILL,2015-MAJOR CHANGES IN CONSUMER PROTECTION ACT,1986

THE NEW CONSUMER PROTECTION BILL,2015 WILL REPLACE THE CONSUMER PROTECTION ACT,1986.THE NEW CONSUMER PROTECTION BILL IS CURRENTLY PENDING IN PARLIAMENT FOR APPROVAL.

MAJOR CHANGES HAVE BEEN MADE IN THE CONSUMER PROTECTION ACT,1986 AS IT WAS FELT THAT IN THE CURRENT DYNAMIC MARKET AND A FAST CHANGING ENVIRONMENT THE OLDER PROVISIONS OF THE ACT WILL NOT SERVE THE PURPOSE OF PROTECTING THE CONSUMERS AGAINST THE UNFAIR AND EXPLOITATIVE TRADE PRACTICES.

THE NEW BILL IS A MORE COMPREHENSIVE ONE AND ONE OF THE IMPORTANT PROVISION OF IT IS THAT IT PROVIDES FOR THE TIME  LIMIT IN WHICH THE CASE MUST BE DISPOSED OF BY THE FORUM.FURTHER NEW PROVISIONS ARE MORE CONSUMER FRIENDLY AND PROVIDES MORE POWER TO THE INNOCENT CONSUMERS.

THE IMPORTANT CHANGES IN THE NEW CONSUMER PROTECTION BILL,2015 ARE AS FOLLOWS:-

1. A new provision has been added which covers 'unfair contract'  that leads to loss to consumers.it is important because many times consumer are placed in unequal bargaining capacity by the service providers.Now a consumer can file complaint in consumer forum on the basis of unfair contract' provision.

2. An explanation has been added to clarify that the e-commerce transaction are covered within the consumer protection act.Further the provisions regarding e-commerce are very much comprehensive to include each and every unfair trade practice.

3. A provision of the new bill covers cases where a manufacturer or service providers deliberately withholds information that leads to loss  or damage to consumers.

4. It also provides for the online filing of cases.

5. The scope of product liability has been widened.

6.the definition of the manufacturer has been broadened in context of the provisions on product liability being added.

7.mediation provision-the forum will firstly try to mediate between the parties through a mediator so as to reach an acceptable settlement which will ensure faster and inexpensive justice to consumers.

8.if a seller refuses to give bill to the consumer,it will regarded as unfair practice as well.

9. A 'central consumer protection authority' would be created to protect the rights of consumers and to prevent exploitation of consumers.further regional offices of central authority would be created so that a consumer can approach the authority through these offices.the officers after receiving a complaint from a consumer needs to dispose of the complaint within a month.in case of delay action against the officer have also been proposed.


10. The jurisdiction of district forum and state forum have been widened.District forum can now entertain cases where the bill value of goods and services is upto 50 lacs.


11. The consumer can file complaint in district forum where he resides irrespective of the fact that the good or services were bought in other area.


12. The complainant or the opposite party will not be able to hire an advocate to fight their case until the value of goods and services exceeds rupees 2 lacs.However the complainant can hire an expert if the complaint requires technical expertise.This provision will benefit the complainant a lot as he/she will get inexpensive justice.The big companies or manufacturers will not be able to hire lawyers for smaller cases involving amount less than 2 lacs.


13. Time limit has been provided for the dispose of complaints by the commission to ensure speedy justice.The commission is required to dispose of complaint within 3 months and within 5 months if the case involves testing or analysis.


14.The district and state forum have been given the power to review their order if their was an error.


15. The state forum can entertain complaints on suo motu as well.

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