Consumer Protection Bill Flashcards
When was the Consumer Protection Bill introduced in Lok Sabha ?
January 2018
What law is it replacing ?
Consumer Protection Act, 1986
What are the new modes of interaction (from 1986) that made a new law necessary ?
Online, teleshopping
What are the two main new provisions ?
- Product Liability
2. Unfair Contracts
When will a contract be said to be unfair ?
If it causes significant change in consumer rights
How many cases does the Bill cover with regards to unfair contracts ?
6
Give some examples of when a contract is said to be unfair.
- Excessive security deposits
2. Unfair penalty for breach
Consumer Protection Bill sets up advisory bodies called ?
Consumer Protection Council
Consumer Protection Council main duty ?
- Protect
- Promote
consumer rights
Consumer Protection Bill is setting up a regulatory body called ?
Central Consumer Protection Authority
Central Consumer Protection Authority can do what ?
- Pass orders to prevent restrictive trade orders
2. Impose penalties for misleading advertisement
Consumer Protection Bill sets up ‘consumer courts’ called ?
Consumer Disputes Redressal Commission
The consumer courts exist at what level ?
District, state and national
What issues do they hear complaints about ?
- Defective products
- Deficient services
and other things
What changes was made in the 2018 Bill as compared to the 86 law ?
Their pecuniary jurisdiction was revised
What does pecuniary jurisdiction mean here?
Amount up to which they can hear complaints
Did the bill increase fines from the 86 law ?
Yes
How much is the fine for misleading advertisement ?
Upto 10 lakhs first time
Second time ?
Upto 50 lakhs
Does the endorses get punished too ?
The endorses may get prohibited from endorsing any other product for one year
And if the endorses repeats again ?
Prohibition period increases by 3 years
Does the current bill specify the qualifications of the commission members and the presidents ?
No, it leaves it to the Central Government to decide
What does the 86 law say on the qualifications ?
- President must be qualified to be a judge
2. Minimum qualification for members specified
Under the current bill, is it possible for the commission to consist of entirely non-judicial members ?
Yes.
Since it is an adjudicating body, this is not desirable.
Is any higher judiciary required to select members of these commissions ?
No
What about the 86 law ?
A selection committee chose them, which had at least one judicial member
When would there be a conflict of interest ?
When the government is one of the aggrieved parties and the entire commission has been chosen by the government.
