By Dr. Sailaja Petikam
Consumer markets for goods and services have undergone drastic transformation since the enactment of the Consumer Protection Act, 1986. The modern market place contains a plethora of products and services. The emergence of global supply chains, rise in international trade and the rapid development of e-commerce have led to new delivery systems for goods and services and have provided new options and opportunities for consumers.
Equally, this has rendered the consumer vulnerable to new forms of unfair trade and unethical business practices. Misleading advertisement, tele-marketing, multi-level marketing, direct selling and e-tailing pose new challenges to consumer protection and will require appropriate and swift executive interventions to prevent consumer detriments.
Therefore, there is a need to modernize the said Act to address the myriad and constantly emerging vulnerabilities of the consumer in the market economy extent.
With a view to widen the ambit and amplify the scope of the said Act and to modernize the legislation on consumer protection to keep pace with the changes in markets, ensure fair, equitable and consistent outcomes for consumers, enable swift executive intervention in the nature of class action both to prevent consumer detriment and to provide redress to consumers.
The Consumer Protection Bill/Act, 2015, the main object is as laid down in the preamble, is to provide for adequate protection of the interest of consumers and for prevention of unfair trade practices and for better administration and for timely and effective settlement of consumer disputes.
The previous Act, 1986 object is only for better protection of the interest of consumer, the authorities are established but not for prevention of unfair trade practices.
Central Consumer Protection Authority
One of the major changes in the Consumer Protection Bill/Act, 2015 is the establishment of an executive agency to be known as the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers which were laid down in Section 6 of the Act, 2015, make intervention when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products.
This fills an institutional void in the regulatory regime extent. Currently, the task of prevention of or acting against unfair trade practices is not vested in any authority. This has been provided for in a manner that the role envisaged for the CCPA complements that of the sector regulators and duplication, overlap or potential conflict is avoided. In this purpose, to remove all measure of doubt, Chapter III is newly inserted as Central Consumer Protection Authority.
Mediation
Another unique feature of this Act is insertion the provisions of ‘Mediation’ as an Alternative Dispute Resolution of consumer disputes through mediation, thus making the process less cumbersome, simple and faster. This will be done under the aegis of the consumer courts. All the provisions for mediation are laid down in Chapter V.
Product Liability
Another new concept introduced in this Act, that is, newly inserted provisions for ‘Product Liability’ action for or on account of personal injury, death, or property damages caused by or resulting from any product. For this, Chapter VI deals the provisions of ‘Product Liability’.
Other Changes
This Act, inter alia, provides for several provisions aimed at simplifying the consumer dispute adjudication process of the Consumer Grievance Redressal Agencies. These include, among others:
- Enhancing the pecuniary jurisdiction of the Consumer Grievance Redressal Agencies, viz. below Rs. 50 Lacs the District Commission, above Rs. Fifty Lacs and below Rs. Ten Crores the State Commission and above Rs. Ten Crores the National Commission is having a pecuniary jurisdiction.
- Increasing minimum number of Members in the Consumer Courts to facilitate fast disposal of complaints. Apart from the President the District Commission shall consist of not less than two members, the State Commission shall consist of not less than four members and the National Commission consists of not less than fifteen members are to be required.
- Power to review their own orders by the State and District Commission.
- Constitution of ‘Circuit Bench’ to facilitate faster disposal of complaints.
- Reforming the process for the appointment of the President and Members of the District Commission.
- Enabling provisions for consumers to file complaints electronically.
- File complaints in consumer courts that have jurisdiction over the place of residence of the complainant, and deemed admissibility of complaints, if the question of admissibility is not decided within the specified period of 21 days.