Consumer Protection Bill

Question 1

When was the Consumer Protection Bill introduced in Lok Sabha ?

Answer 1

January 2018

Question 2

What law is it replacing ?

Answer 2

Consumer Protection Act, 1986

Question 3

What are the new modes of interaction (from 1986) that made a new law necessary ?

Answer 3

Online, teleshopping

Question 4

What are the two main new provisions ?

Answer 4

1. Product Liability

2. Unfair Contracts

Question 5

When will a contract be said to be unfair ?

Answer 5

If it causes significant change in consumer rights

Question 6

How many cases does the Bill cover with regards to unfair contracts ?

Answer 6

6

Question 7

Give some examples of when a contract is said to be unfair.

Answer 7

1. Excessive security deposits

2. Unfair penalty for breach

Question 8

Consumer Protection Bill sets up advisory bodies called ?

Answer 8

Consumer Protection Council

Question 9

Consumer Protection Council main duty ?

Answer 9

1. Protect
2. Promote
   consumer rights

Question 10

Consumer Protection Bill is setting up a regulatory body called ?

Answer 10

Central Consumer Protection Authority

Question 11

Central Consumer Protection Authority can do what ?

Answer 11

1. Pass orders to prevent restrictive trade orders

2. Impose penalties for misleading advertisement

Question 12

Consumer Protection Bill sets up ‘consumer courts’ called ?

Answer 12

Consumer Disputes Redressal Commission

Question 13

The consumer courts exist at what level ?

Answer 13

District, state and national

Question 14

What issues do they hear complaints about ?

Answer 14

1. Defective products
2. Deficient services
   and other things

Question 15

What changes was made in the 2018 Bill as compared to the 86 law ?

Answer 15

Their pecuniary jurisdiction was revised

Question 16

What does pecuniary jurisdiction mean here?

Answer 16

Amount up to which they can hear complaints

Question 17

Did the bill increase fines from the 86 law ?

Answer 17

Yes

Question 18

How much is the fine for misleading advertisement ?

Answer 18

Upto 10 lakhs first time

Question 19

Second time ?

Answer 19

Upto 50 lakhs

Question 20

Does the endorses get punished too ?

Answer 20

The endorses may get prohibited from endorsing any other product for one year

Question 21

And if the endorses repeats again ?

Answer 21

Prohibition period increases by 3 years

Question 22

Does the current bill specify the qualifications of the commission members and the presidents ?

Answer 22

No, it leaves it to the Central Government to decide

Question 23

What does the 86 law say on the qualifications ?

Answer 23

1. President must be qualified to be a judge

2. Minimum qualification for members specified

Question 24

Under the current bill, is it possible for the commission to consist of entirely non-judicial members ?

Answer 24

Yes.

Since it is an adjudicating body, this is not desirable.

Question 25

Is any higher judiciary required to select members of these commissions ?

Answer 25

No

Question 26

What about the 86 law ?

Answer 26

A selection committee chose them, which had at least one judicial member

Question 27

When would there be a conflict of interest ?

Answer 27

When the government is one of the aggrieved parties and the entire commission has been chosen by the government.