Consumer Protection Act needs to empower buyers

Most consumers today do not have a proper understanding of their rights and as a result are being deceived. This is especially the case for consumers in rural areas. As measures are being taken to protect the consumer rights it is also important to increase awareness on the rights of the respective consumers.

Hyderabad: Consumers have become a key factor with regards to economic liberalization and globalization. As large-scale purchases of products are taking place, it is needed that caution against fraud and loss is put in place. As measures are being taken to protect the consumer rights it is also important to increase awareness on the rights of the respective consumers.

Most consumers today do not have a proper understanding of their rights and as a result are being deceived. This is especially the case for consumers in rural areas. Last year, the Center introduced a new bill to bring about changes to the Consumer Protection Act of 1986. The bill was signed by the President on August 9, 2019.

Protection of consumer rights, curbing unethical businesses, quick grievance redress system, e-commerce transactions have been included in the law. This legislation is a milestone in empowering consumers. The ‘US Federation Trade Commission’ of United States and the ‘Australian Consumer And Commission’ in Australia, are playing a key role in consumer rights protection.

Commissions have been set up at the district, state and national level to replace consumer platforms. In order to protect the rights of consumers, and preventing illegal businesses under this Act, the Consumer Protection Authority was set up. This will continue under the aegis of the Chief Commissioner and Sub-Commissioners.

The investigation department will be under the supervision of the Director General. It has the power to raid and confiscate. If a complaint is being made that an immoral business is being carried out and rights are violated, a report can be sought from the Collector.

The new law has prescribed the limitations of the Consumer Commissions as well. The Commission at the district level, can take up cases upto a range of Rs.1 Crore. The National Commission takes up the cases over and above Rs.1 crore, upto Rs.10 crores. In the hearing of the cases done in the district level commission, the judgment can be appealed in the State Commission and subsequently, at the National Commission.

Likewise, the State Commission has the power to review / revoke its judgments. Because of this - if there is a situation that demands a rectification in the judgment, it is possible to rectify them at the earliest.

Those who violate the rules and regulations are penalized with heavy fines. If the consumers are misled through unrealistic statements or advertisements, the concerned vendor shall be penalized with upto Rs.10 lakhs. Celebrities involved in such fraudulent statements and ads, will be banned from participating in other commercials. Any harm caused by adultery of products can be punishable by up to six months in jail and a fine of upto Rs.1 lakh.

Incase the orders are not implemented as said, a punishment of upto six months imprisonment and a fine of upto Rs.20 lakhs is possible. The manufacturer and the service provider will be jailed and fined for acting against the interests of the consumer.

New arbitration centres have been set up to resolve disputes. These are set up with the intent of getting the users to solve their problems quickly. If there is no settlement within the stipulated time, the district level commission may approach the state and national commissions.

Under the new law, consumers can complain about their problem online, from anywhere. All in all, the law is designed to benefit the consumer. The definition of the word 'commodity' was enacted in the 1986 Act. The new law has been sharpened further.

In the event of delays in providing services to customers, compensation is payable to the consumer. The verdict was announced in the Lalit Kumar vs. Krishna case. A compensation of Rs. 35,000 was ordered to be paid by to the consumer since the consumer was made to wait for 4 hours than the stipulated and agreed upon meeting time.

Consumer cases settlement process must be time-bound. This will help the producer and seller to act responsibly. There is a view that there should be clear control over advertising of harmful food products intended for young children. Consumer awareness conferences should be held by government- funded organizations, especially in the universities, colleges and schools.

It is also felt that laboratories should be set up by the government to test the quality of the products being manufactured in the market. Releasing the products to the market is beneficial to the customers after meeting the specified criteria. Consumer participation is also critical to governments' integrity and commitment to law enforcement.

On a gross note, the new law has been positive in respect of consumer rights. The consumer is satisfied only when his complaints are resolved and appropriate compensation is received. Any law is said to be effective only after it is rightfully implemented.

(Article written by Dr. M. Buchiah, expert in consumer affairs matters)