Bad days for misleading advertisers: Govt working on new consumer protection law, says PM Modi

We all are consumer at some place. By virtue of being consumer, we have some rights and therefore those rights need to be protected. This is exactly what Prime Minister Narendra Modi is promising - consumer protection. The government is in the process of enacting a new Consumer Protection Act to save all of us from misleading advertisements we hear or see every day. While delivering a lecture at the Regional Conference on Consumer Protection, the Prime Minister today gave a historical lesson on why the consumer protection is important in ever-changing world.

Prime Minister said for thousands of years we have been connected by trade, culture and religion. "The Coastal Economy has made significant contribution in connecting this region for centuries. However, in today's modern era our traditional relationship has attained a new dimension. The Asian countries are not only catering to the goods and services markets in their own country but their reach has expanded to other continents as well. In such a scenario, Consumer Protection is an important component which enhances and strengthens trade in this region," the Prime Minister said.

Prime Minister Modi said that the proposed Act lays great emphasis on consumer empowerment. While he did not explain what will be the punishments for misleading brands, he said: "Rules are being simplified to ensure that Consumer grievances are redressed in a time-bound manner and at least possible cost. Stringent provisions are proposed against misleading advertisements." The government will also constitute a Central Consumer Protection Authority with executive powers for quick remedial action. The government's new law will replace the Consumer Protection Act 1986.

This is not the first time when the Prime Minister is acting to protect consumer rights. Earlier, the central government had enacted the Real Estate Regulatory Act for the protection of home buyers. Today he talked about it and said that earlier the consumers had to wait for years to get the possession of their homes as they would fall prey to unscrupulous builders. Now after RERA, only registered developers can seek bookings only after getting all the required permissions, the Prime Minister said.

Recently, the government enacted Bureau of Indian Standard or BIS Act. After the enactment of BIS, any commodity or service related to public or consumer interest can be brought under compulsory certification. BIS Act has provisions to order recall of substandard products from the market and for compensation in case of loss or damages incurred by the consumer. However, this is not all what the Prime Minister thinks about consumer protection. He said: "Interests of consumers are not protected by merely giving them rights. In India we are also working to formulate schemes which help consumers save money. The poor and middle class in the country is benefitted most from these schemes."

The government's move is quite significant as the consumer grievances about misleading advertisements have increased over the years. Earlier this month, leading brands such as Hindustan Unilever Ltd, Tata Chemicals and ITC figured on the ad watchdog ASCI's list of companies that have been flashing misleading advertisements to promote their products. In June, top FMCG brands - Coca Cola, Emami and PepsiCo- were pulled up for misleading advertisements.  The Customer Complaints Council of Advertising Standards Council of India received 126 complaints in the month of June, out of which 62 have been upheld.