Unit 3 Part2
Unit 3 Part2
Unit 3 Part2
7.4
RECENT DEVELOPMENTS IN CONSUMER PROTECTION IN INDIA
A The Consumer Protection Act, 2019: The Consumer Protection Act, 1986 in present time
has thus, become archaic and the time has come to repeal and replace it with the Consumer
Protection Act, 2019. The New Act received its accent from the President orn 9th August
2019. The Consumer Protection Act, 2019, provides mechanisms for making the consumer
complaint system more robust. The earlier Act faced huge anomalies where the problems of
consumers related to e-commerce, product liability, more than 4.8 lakh pending consumer
cases in the Consumer Courts, misleading advertisements were not attended instantly. Since.
Justice Delayed is Justice Denied' any delay in seeking redressal by consumers reduces their
trust in the system.
Innovative methods such as mediation, Central Cornsumer Protection Authority,
product
liability, mediation centres attached to consumer commissions, unfair contracts, class action
suits are nOW a
part of the Consumer Protection Act, 2019 and as soon as the Rules are notified
the implementation New Act would begin, the new
redressal to consumers and would be a game
techniques would provide speedy
changer. It is believed that the new legislature
would be able to overcome the anomalies in the old Act and
would be a pathbreaker. Salient
features of the Consumer Protection Act, 2019 are:
Some of the key highlights of the Consumer
Protection Act,
2019 Act which proposes slew
measures for
protection of consumers are:
1. Establishment of Consumer Commissions: To
summary redressal of consumer
provide inexpensive, speedy and
quasi judicial-a
proceeding
disputes,
up in each District and State and at the quasi-judicial
bodies have been set
conducted by called as the District national level, which now would be
an Commissions, the State Commissions and the Nationa
administrative Commissions
35 State
respectively. At present, there are more than 600 District
or executive Commissions with the National Consumer Forums a
official that is
similar to court
(NCDRC) the apex. NCDRC has
at
its office at
Disputes Redressal Commission
proceedings. Janpath, New Delhi. Janpath Bhawan, A Wing, 5" Floor,
Thus, the three-tier system in the New
Act would be the same as set in the
Protection Act, 1986 at up Consumer
of district, state and national levels. The
adjudicatory bodies increased in case of District pecuniary jurisa
Commission to 1 Crore, in
ca
Consumer Protection in India
167
ofState ConCammission betwecn 1 Crore to u
National Crore and
Commission
10crore. Since the access to District Commissions better compared to state and a
to
consumer rights, unfair trade practices, misleading advertisementsand impose
and fake products. As a regulator CCPA would have the
alties for selling faulty
to take suo motu action towards the manufacturers, sellers and service
p owers
owe
can act on:
Thus, CCPA
providers
of unfair trade practices,
(a) complaints
issue safety guidelines,
(b) discontinuation of services,
recall or
(c) order product
to other regulators,
(d) refer complaints and
such as imposing penalties,
has punitive powers
(e) commissions
consumer
actions betore
() can file of c o n s u m e r rights or
unfair trade practices
matters
Intervene in proceeding in
(g) Investigation Wing by
headed a Director-
will have an
The Central Authority under the Act which
or investigation
General for the purpose of conducting inquiry
2019.
addition in the Consumer Protection Act,
is a new
Protection Act, 2019 envisages
Chapter II of the Consumer in
3. Consumer
Councils:
Councils at the Centre,
in all the States and
Consumer Protection
setting up of the for establishment
1986 Act the New legislature also provides
each district. As in the The object ot
National, State and District.
three levels:
of Advisory Councils at of the c o n s u m e r s .
The Councils
and protect the rights and play an
the Councils is to promote the c o n s u m e r s
deliberative bodies for The
are very important and potent in rural areas.
movement, especially
the consumer functions
mportant role in spreading that the present
market system
Councils act as the catalyst
for change so
their needs.
e r s and for satisfying
for the welfare of the c o n s u m under
claim for compensation
Froduct Liability: Chapter
VI applies to every a detective
*
for harm caused by
a complainant
any
a product liability action by serviced by a product service
manufacturer or
manufactured by producta be brought by
PrOauct A product liability action may
Provider or sold by a product
seller. service provider Or
manufacturer or a product a
a
complainant against a product him on account o
for any harm caused to
seller, as the case may be,
product
defective product.
A product manufacturer shall be liable
in product liability
action,
i
defect; or
)the product contains a manufacturing
6) the product is defective in design; or
Consumer Affairs
and Customer Care
168
specifications; or
deviation from manufacturing
c)there is a
to the express warranty; or
the product does not conform
(d) instructions of correct ncao to prevent
to contain adequate usage
(e) the product fails or incorrect usape
regarding improper
or any warning
any harm
introduces the concept of mediation for
5. Mediation: Chapter
V of the Act provid
The State Government, by notificationng
to each o Would
to consumers.
speedy redressal which would be attached
mediation cell
open a consumer
Consumer
operates under
the Centre for Consumer Studies at Indian Institute of Public Administration from The Project
the need of consumers for a Telephone Helpline to deal with multitude of
recognizes
NCH VISION
A Nation of awakened, empowered and responsible consumers and socially and legally
responsible Corporations."
NCH MISSION
"To provide telephonic advice, information and guidance to empower Indian consumers
and persuade businesses to reorient their policy and management systems to address
comsumer concerms and grievances adopting world class standards."
NCH responds to more than 40,000 complaints in a month, and it has partnered with
oT than 370 major companies to whom complaints are transferred online for resolution and
edback from them. An Integrated Grievance Redress Mechanism (INGRAM) portal
e d tor bringing all stakeholders such as consumers, Central and State Government
P V a t e companies, regulators, Ombudsmen and call centers etc. on to a sirngie
Customer Care
172 Consumer Affairs and
is essential for
world over that good governance
It has been recognised the
sustainable development, both economic
and social. The three essential aspects emphasised in
and responsiveness of the administration.
good governance are transparency, accountabilityto the
The "Citizen's Charters initiative" is a response quest for solving the problems which
a citizen encounters, day in and day out, while dealing with organisations providing public
services.
between the service provider and
The concept of Citizen's Charter enshrines the trust
in the United Kingdom by the
its users. The concept was first articulated and implemernted
Conservative Government of John Major in 1991 as a national programme witha simple aim:
to continuously improve the quality of public services for the people of the country so that
these services respond to the needs and wishes of the users. The programme was re-launched
in 1998 by the Labour Government of Tony Blair which rechristened it "Services First".
The basic objective of the Citizen's Charter is to empower the citizen in relation to public
service delivery. The six principles of the Citizen's Charter movement as originally framed
were: Citizen's Charter is a document which represents a
systematic effort to focus on the commitment of the
() Quality: Improving the quality of services; Organisation towards its Citizens in respects of Standard
of Services, Information, Choice and Consultation,
(i) Choice: Wherever possible; Non-discrimination and Accessibility, Grievance Redress,
Courtesy and Value for Money.
(ii) Standards: Specifying what to expect and how to act if standards are not met;
(iv) Value: For the taxpayers' money;
Charter: The
Indian Scenario
Citizen
Conference of Chief Ministers of various States and Union Territories held
Ata iow Delhi, an "Action Plan for Effective and Responsive 24 on
May Government"
Centre and:State levels was adopted. One of the major decisions at that
at the
and State Governments would formulate Citizen's
Conference
was that the Central Charters, starting
with those ectors that have a large public intertace (e.g., Railways, Telecom, Posts, Public
tribution Systems and the like). These Charters were to include first, standards of service
l l as the time limits that the public can reasonably expect for service delivery, avenues
as
of grievance redressal and a provision for ependent scrutiny through the involvement of
citizen and consumer groups.
representation from users, senior management and the cutting edge staff.
The Charters are expected to incorporate the following elements
Citizen Charter
The Ministry of Consumer Affairs
Citizens' Charter of the Department of Consumer Affairs is a declaration of co.
of the Department to achieve excellence in the tormulation and implementation of men
and procedures of the Department of Consumer Affairs for the benefit of consiuies policies
the public at large. Department of Consumer Affairs is the nodal agency for formulab
National Consumer Policy, implementing various consumer related programmes, forminla.of
standards Bureau of Indian Standards (BIS), and Testing & Evaluation #h
through rough
National Test House, a sub ordinate a subordinate office for fulfilment of all other obier
ectives
as mentioned in the vision of the department. In this proOcess the department consults and
collaborates with the following stakeholders state governments and union territories from
Food, Consumer Protection and Legal Metrology department. Full two responsibility centres
namely Bureau of Indian Standards and National Test House, National Consumer Disputec
Redressal Commission (NCDRC), Indian Institute of Public Administration and National
Law Schools, Federation of Indian Chamber of Commerce and Industry (FICCI) and leadin
voluntary consumer organisations and all consumers under various disciplines across the
country are consulted. The document mentions how consumers can get speedy redressal and
the Charter is updated every year.
This part discusses how Comparative Testing and National Test House
play an important
role in helping consumers make the right choice about the various
quality parameters before
making a purchase.
Comparative Testing (CT) means the testing of different brands offered to the consumer in
a
product category and having the same purpose, the results of which tests provide consumers
with unbiased information on the characteristics of these
has to select a soap bar then for
products. For example, if a consumer
comparative testing purposes based on the market share of the
brands atleast ten different soap bars would be
bought. After that the label would be codified
and they would be given names such as A, B, C and so on. After that
the lab for testing. The laboratory based on the nature of the
they would be send to
product would do the testing on
various parameters. For example in case of a it would be
soap
Cleaning efficiency
Surface damage
Mushiness
Foam/Lather
Matter insoluble in alcohol
Moisture
Alkanity
.Retention
Further results would be communicated by the
laboratory to the organization which wou
show which brand has stood first, second and so on. Since
it is third party certification it heips
Consumer Protection in India
175
Protects Consumers
How Comparative Testing
Better and Safer
Alternative P'roducts at Competitive
Enables Consumers to Choose
Prices. Government and the Manufacturers
Link Between Consumers, the
Serves as a
of Product Manufacturing, Sellino
Consumer Concerns to the Centre-stage
Brings
and Policy Making
Consumers on Unsafe Products
Right to Safe Product Informing
-
National Test House (NTH), a subordinate otfice under the administrative control of
Denartment of Consumer Affairs, is a premier Scientific Institution of the Country, established
in 1912 in Kolkata. Since then it has grown into a laboratory of national importance in the
field of testing, quality evaluation and ensure the quality of almost all sorts of industrial
and consumer products except drugs, arms and ammunition by issuing test certificate in
accordance with the national/international or customer standard and specification. It plays
a pivotal role in the development of indigenous industries and serves as a vital link between
industrial research and manutacture of finished products under rigid quality control. National
at Kolkata and has a network of 6 regional offices at Kolkata,
Test House has its Headquarters
and Guwahati.
Mumbai, Chennai, Ghaziabad, Jaipur
Test and evaluation of materials, products, equipmene's, modules, system and sub-
1. pharmaceutical
all branches of Science & Technology except
system in practically accordance with National Internal
Standards.
and arms & ammunitions in
non-electrical measurement against
Calibration in the field of electrical and
2. National Standards
Reference Standards having traceability to
appropriate customer.
of the
calibration at the premises
3. On-site testing and
scheme of Central Authority for Testing
Certification of Welders under the
4 Test and
Welders.
and Certification of promotion and
indigenous products for export
5. Assist industries in developing programme.
assurance
substitution besides
their quality
import
Standards.
formulation of National
6 Assist BIS in work in Test Engineering
organization
with R& D
and users Laboratories |NABLJ
7. Assist industries & Calibration
has also
Board for Testing It
Assist National
Accreditation
in the country.
8. Calibration
Laboratories
arbitration
of disputed
accreditation of Testing& laboratory
for
in as a n
independent
reference
various standarus
Deen c o m b i n e d as per
reference to quality
compliance
samples with