Consumers will no more be taken for a ride. Union Cabinet will soon pass a new bill which aims at strengthening the consumer protection mechanism. The new law will replace the current consumer protection law which has been in force since 1986. The bill takes into consideration consumer rights and prescribes graded punishment for manufacturers, sellers and service providers for providing faulty products or those harmful to consumers. Here are 10 things to know about the new Consumer Protection Bill, 2017.
- Manufacturer or service provider making false or misleading advertisements will attract imprisonment for up to two years with fine up to Rs 10 lakh or five years imprisonment with fine up to Rs 50 lakh.
- Those manufacturing, selling, storing, distributing or importing adulterant goods, resulting in the death of a consumer, can attract punishment up to life imprisonment and not less than seven years and fine not less than Rs 10 lakh.
- In case of serious injury, the punishment is up to seven years imprisonment and fine up to Rs five lakh. In case of injury, the punishment is imprisonment up to one year and fine up to Rs three lakh.
- In case of no injury, the punishment is imprisonment up to six months and fine up to Rs one lakh.
- For those convicted for the first time could face suspension of license for up to two years and those convicted for second or more time can face cancellation of license.
- If a product causes any harm to the consumer then the manufacturer will face liability even if he/she proves he/she was not negligent.
- A manufacturer/producer/seller will be held responsible for any injury or death of consumer caused due to issue in manufacturing, design, warning, labeling, instruction, packaging or marketing.
- A powerful Central Consumer Protection Authority will be formed to investigate into issues related to violations of consumer rights, unfair trade practices, and misleading advertisements.
Also read: “New Consumer Protection Bill will be introduced in the Winter session”
- The bill demands to form of Consumer Dispute Redressal Commissions at the district, state and national levels.
- The bill was drafted in 2015 and introduced in Lok Sabha last year. It later went to the Standing Committee on Food and Consumer Affairs.
