A step up for consumer protection

The Consumer Protection Bill, 2019, passed by Parliament, has strengthened the existing 1986 law with new and improved provisions necessary to deal with issues that have come up in the last three decades affecting consumers’ interests. The new law replaces the old one. Some loopholes have been plugged and safeguards added in the light of the past working of the law. Some proposals have emerged from discussions on the law and the experience of its implementation. A parliamentary panel also made some recommendations to update it and make it more relevant. These have ranged from stronger steps to punish food adulterators to better regulation in the areas of advertisements, e-commerce and direct marketing. Some of these areas have emerged only recently and there was no legal framework to protect consumers’ interests related to them. The Bill fills that gap.

The Bill prescribes stricter penalties for adulteration and misleading advertisement campaigns. One important provision seeks to make celebrities liable to be penalised if the products they endorse do not meet the claims that are made. The provision has been contentious, and the proposal has been discussed for long. There was a demand for such a provision from many consumer organisations, and the parliamentary panel which studied the need for changes in the law had also recommended it. The Bill prescribes a fine of up to Rs 10 lakh for first-time offenders and a ban on endorsements for a specific period for repeat offenders. Celebrities are held in high regard by people and this is often exploited by manufacturers and service providers. They are paid highly for their endorsements and they have the responsibility to ensure that the claim is not wrong and misleading. Cricketer MS Dhoni once had to resign as the brand ambassador of a realty firm in an embarrassing situation. The law also prescribes jail term, in addition to fine, for manufacturers for false and misleading advertisements.

The Bill seeks to establish a Central Consumer Protection Authority to promote, protect and enforce consumer rights and strengthens the existing mechanism for redressal of grievances about defects in goods and deficiencies in services. It also simplifies the dispute resolution process. Other welcome features include the provisions to make it mandatory for manufacturers to withdraw an entire batch of products if one unit is found defective, and to ensure that product details, like the maximum retail price, are highlighted. Protecting consumer interests is difficult in these times of high competition and commercialisation, fake news and social media campaigns, but it is very important for that very reason. Stringent provisions are necessary, and they should be effectively implemented.