Lok Sabha passes Consumer Protection Bill 2018; here's what it means for manufacturers and customers

The bill calls for enforcement of consumer rights and strict punishment, including jail terms and heavy fines for misleading advertisements and food adulteration.

The bill was first introduced in Lok Sabha in January 2018. (Image: AFP)

Consumer Protection Bill 2018: Lok Sabha on Thursday passed the Consumer Protection Bill 2018, reported news agency ANI. The bill calls for enforcement of consumer rights and strict punishment, including jail terms and heavy fines for misleading advertisements and food adulteration. Under the bill, consumers can now raise complaints regarding defects in goods and deficiency in services. The bill was first introduced in Lok Sabha in January 2018 by Union Consumers Affairs Minister Ram Vilas Paswan. The Consumer Protection Bill 2018 will be replaced by the outdated Consumer Protection Act 1986. The newly passed bill states that any manufacturer or service provider who tends to spread misleading or false advertisement about their products/ services which are prejudicial to the interest of consumers shall either be punished with imprisonment for a term of up to two years or a fine which may extend up to Rs 10 lakh. In some cases, the imprisonment term can extend up to 10 years and the fine could go up by Rs 50 lakh. According to the bill, for celebrities who endorse these false products or services, there will be penalties and no jail term. “Consumer Disputes Redressal Commissions will be set up at the District, State and National levels for adjudicating consumer complaints,” Paswan said while speaking to reporters outside Lok Sabha. Under the provisions of the new Bill, consumers can now lodge complaints sitting at homes and no lawyers would be required. Also, there is a provision for mediation. The Union Consumer Affairs Minister further informed that if complaints are not heard within 21 days, they will automatically be admitted. The bill also provides for product liability action, which means a complaint filed by a person before consumer court for claiming compensation for the harm caused to him on account of a defective product or service. The Bill also sets up a Central Consumer Protection Authority which will promote, protect and enforce consumer rights as a class. The authority can issue safety notices for goods and services, order refunds, recall goods and rule against misleading advertisements.