Cabinet approves new Consumer Protection Bill

New Delhi, July 28

The Cabinet approved the Consumer Protection Bill, 2015, a new Act to replace a 29-year-old law that proposes a regulatory authority empowered to recall products and initiate class suit against defaulting companies, including e-tailers.

The proposed new law assumes significance in light of growing concerns over safety of consumer products and services, especially after the Maggi controversy.

The new Bill, likely to be introduced in the ongoing session of Parliament, provides for a framework to protect of consumer interest and will replace the Consumer Protection Act, 1986, sources said.

The decision comes against the backdrop of emergence of complex products and services in the era of growing e-commerce business in India that has rendered consumers vulnerable to new forms of unfair trade and unethical business practices, sources said.

The Bill proposes an executive agency — called the Central Consumer Protection Authority' (CCPA) — to 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.

The Bill also has provisions for "product liability" if product/services causes personal injury, death or property damage and will take action against defaulting manufacturers or service providers.

The bill proposes mediation by consumer courts as an alternative dispute resolution mechanism.

The Bill also provides stricter penalty, including life imprisonment in certain cases, sources added.

The Consumer Protection Act 1986 was amended thrice earlier in 1991, 1993 and 2002. — PTI