Lok Sabha passes Consumer Protection Bill, 2018

• The Lok Sabha on December 20, 2018 passed the Purchaser Safety Invoice 2018. The invoice calls for stringent punishment, which includes jail terms and hefty fines for deceptive adverts and food adulteration.

• The invoice will now go to the Rajya Sabha for discussion. The bill seeks to replace the 2015 Shopper Defense Invoice that was introduced to repeal the 30-calendar year-previous Consumer Protection Act, 1986.

• It was originally introduced in the Lok Sabha in January 2018.

Provisions of the new Monthly bill

• The Client Defense Monthly bill, 2018 aims to guard consumers’ passions through a redressal mechanism that would make sure timely and productive settlement of disputes.

• It seeks to enlarge the scope of the present law and make it more efficient and purposeful.

• It seeks to establish a Central Customer Security Authority (CCPA) to defend buyer legal rights and appear into the problems associated to bogus or misleading adverts.

• It has provisions for put up-litigation stage mediation as an alternate dispute resolution system. It also delivers for product liability action.

Penalties

• The monthly bill offers for great and ban on celebrities for endorsing deceptive advertisements:

• In situation of the very first offence, the penalty would involve a fantastic of up to Rs 10 lakh and a one particular-year ban on any endorsement.

• For the 2nd offence, the penalty would include things like a fine of up to Rs 50 lakh and a three-yr-ban on endorsements.

• For brands and organizations, the penalty would be up to Rs 10 lakh and up to two several years of jail phrase for the to start with offence.

• For any subsequent offence, the makers and companies would have to shell out a great of Rs 50 lakh and provide a jail phrase of 5 years.

• The invoice also supplies for penalty up to everyday living expression jail sentence in situation of adulteration.

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Mains Paper 2: Governance

Prelims level: Consumer Protection Bill

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