Consumer Protection Bill: Parliament on Tuesday passed the Consumer Protection Bill 2019 that seeks to establish authorities for timely and effective administration and settlement of consumer disputes. The Bill was approved to revamp the process of administration and settlement of consumer disputes, with stiff penalties including jail term for adulteration and fines for misleading ads  by companies.

The Consumer Protection Bill 2019, already passed by Lok Sabha, was approved in the Upper House by voice vote and will replace the Consumer Protection Act, 1986.

Under the Bill, celebrities endorsing misleading ads are also liable for fine. The bill piloted by Union Food and Consumer Affairs Minister Ram Vilas Paswan seeks to establish a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights.

The bill strengthens the rights of consumers and provides a mechanism for redressal of complaints regarding defects in goods and deficiency in services.

Replying to a debate on the Bill, Mr Paswan said that the suggestions given by members would be included in the rules framed by the Ministry under this legislation. The minister said if a product is found faulty, instead of earlier individual examination, the entire batch would be examined. He said the new bill seeks to take care of product liabilities and service, as well as action against publishers and celebrities of misleading advertisements.

Consumer Protection Bill: HIGHLIGHTS

    • The Bill, already passed by Lok Sabha, was approved in the Upper House by voice vote



  • It seeks to strengthen rights of consumers and provides a mechanism for redressal of complaints regarding defects in goods and deficiency in services

Mr. Ramvilas Paswan said there are a number of cases, over 20,304 cases at national, 1,18,319 cases pending at state level and 3,23,163 cases are pending at the district level in the country. The minister lamented that still, in 118 districts out of 596 districts the posts of president of consumer commissions are not appointed and as many as 362 posts of members are lying vacant.

“Now we are naming district commission, state commission and national commission, with the district and state commissions under state governments,” he said. Responding to a point regarding celebrity endorsements raised by Samajwadi Party member Jaya Bachchan, Mr Paswan said when the Bill was sent to a Standing Committee earlier, it set jail term as punishment for all.

“This bill is a must in the current juncture but takes away the states’ powers. What is the reason for taking away the states’ powers indirectly in every bill?,” DMK member Tiruchi Siva questioned in Rajya Sabha.

He pointed to a provision in the bill wherein members of the state and district level consumer disputes redressal forums will be appointed by the central government, “usurping the powers of the state”.