DNA Special: Law soon to make consumer the king

Making consumer the king, Union Cabinet will soon give its nod to a bill that seeks to bring sweeping changes in the existing consumber protection law and prescribe graded punishment for manufacturers, sellers and service providers of a product which is faulty or end up causing harm to consumers.

After the vetting from Law Ministry, the Consumer Affairs Ministry headed by Union Minister Ram Vilas Paswan has sent the Consumer Protection Bill, 2017 to Cabinet Secretriate, two years after it was introduced in Lok Sabha in August 2015.

A copy of the 70-pages bill accessed by the DNA shows that any manufacturer or service provider can be punished with imprisonment for up to two years with fine up to 10 lakh rupees and for five years imprisonment and fine up to 50 lakh for any subsequent offence for making an false or misleading advertisement which is prejudcial to the interest of the consumers.

Punishment for manufacturing for sale or stroring, selling and distributing or importing products containing adulterant and spurious goods, if results in death of consumerss,  can lead to punishment "up to  life imprisonment and not less than seven years" and with fine not less than 10 lakh rupees.

In case of grievous injury to consumers, the punishment is imprisoment up to seven years and fine up to five lakh rupees, in case of non-grievous injury, it is imprisoment up to one year and fine up to three lakh rupees.

Even in case of no injury, the offence regarding containing prodcuts "adulterant" will  lead to imprisonment up to six months and fine up to one lakh rupees. In the first conviction, the offence could lead to supension of license for up to two years and in case of second or subsequent conviction, license of such people can be cancelled. These have been cognizable and non-bailable offences.

The bill makes product manfacturer will face liability "even if he proves that he was not negligent or fraudulent in making the express warranty of a product" and the consumer will be entitled to compensation for any harm caused  by a defective product.

The conditions are  if the product contains a manufacturing defect, is defective in design, there is a deviation from manufacturing specifications, the product does not conform to the express warranty and it fails to contain adequate instructions or correct usage to prevant any harm or any warning regarding imporper and correct usage.

The service provider faces liability among other things for "conscious withholding of any information, which caused harm" and if it did not conform to express warranty or the terms and the conditions of contract. A prodcut seller is liable if he has altered or modified the product and this was the substantial factor in causing harm or made an express warranty of a product different from the one made by the manufacturer and the product failed to conform to that.

The Bill will lead top creation of a powerful Central Consumer Protection Authority to investigate into matters relating to violations of rights of consumers, unfair trade practices and false or misleading advertisements. It will look into consumer complaints, issue safety notices for goods and services, and pass orders for recall of goods and against misleading advertisements.

As per the bill, the Authority can, besides acting on complaint of consumbers or any directive of the central government,  can take up investigations even su motu or "of its own motion" to determine whether there exists a prima facie case of violation of consumer rights,  any unfair trade practice, any false or misleading advertisement.  

Similarly the bill entail setting up of Consumer Dispute Redressal Commissions at the district, state and national levels for adjudicating consumer complaints.

Once it comes in force,  the Consumer Protection Act 1986 prevaing  so far, will undergo a massive  change, revolutionising consumer rights in India.  The bill's provision will be application throughout India barring Jammu and Kashmir.

After going through Standing Committee and GoM routes, the70-pages bill is finally ready to be taken up by Parliament once the Cabinet gives its nod. Food and Consumer Affairs Paswan says the government is keen to bring the bill in Winter Session.

Whoever fails to comply with the direction of the Authority will face imprisonment not less than six months or a fine which may extend to 20 lakh rupees or both.

The Authority, which has been vested with the power of reviewing the existing law in this regard and recommend appropriate remedial measures at later stages, shall also recommend adoption of "international covenants and best international practices on consumer rights" to ensure their effective enforcement.

Besides, the authority, which will consist of a Chief Commissioner and not less than five Commissioners appointed by the central government and is headquartered in the NCR region, also have the power to pass orders for recall goods if it is satisfied about violation of consumer rights and unfair trade practice by a person.

Under the new law, the consumer will be entitled compensation if any harm is caused to him by a defective product manufactured by a product manufacturer or serviced by a product service provider or sold by a product seller. While the product seller will be

One of key recommendation of the Standing Committee on the bill was however, done away with later as the GoM headed by Finance Minister Arun Jaitley decided that  celebrities endorsing products with unrealistic and dodgy claims will not have to go to jail but instead face a fine of up to Rs 50 lakh and a ban on appearing for advertisements for up to three years.

NGOs and various rights groups had opposed the change but the government arrived at a decision arguing that the provision for jailing celebrities for endorsing dodgy products exist nowhere in the world.

KEY PROVISIONS OF NEW BILL

• Imprisoment up to life term and not less than seven years and with not less than Rs 10 lakh for manufacturing for sale, storing, selling, distributing, importing products containing adulterant or spurious goods.
   
• Any manufacturer or service provider can be punished with imprisonment  five years imprisonment and fine up to 50 lakh for any subsequent offence for making an false or misleading advertisement which is prejudcial to the interest of the consumers.
   
• Manufacturer will face liability even if he proves that he was not negligent or fraudulent in making the express warranty of a product and the consumer will be entitled to compensation for any harm caused  by a defective product.