Government approves Consumer Protection Bill, 2015

The Cabinet on Wednesday approved the Consumer Protection Bill, 2015, which seeks to replace the 29-year-old Consumer Protection Act, 1986, and proposes setting up a regulatory authority to curb unfair trade practices. The new Bill seeks to create a Consumer Protection Authority modelled on the lines of the US and European countries for fast-tracking redressal of consumer grievances. The consumer affairs ministry aims to introduce the Bill in the ongoing Monsoon Session of Parliament.

According to sources, the Bill has a provision for product liability and provides enough powers to the regulatory authority to recall products and cancel licences if any consumer complaint affects more than one individual. For speedy disposal of consumer court cases, the Bill seeks to provide 'mediation' as an alternative route to resolve disputes and also suggests simplified judicial process to ensure inexpensive justice. The Bill provides for stringent penalty, including life imprisonment in certain cases, and sufficient provisions for protecting e-retail consumers.

The decision comes against the backdrop of emergence of complex products and services in the era of growing e-commerce business in India has rendered consumers vulnerable to new forms of unfair trade and unethical business practices, sources said. The key features of the new Bill include establishment of an executive agency Central Consumer Protection Authority, which will protect and enforce the rights of consumers.

The authority will intervene when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action, including enforcing recall, refund and return of products, sources added.