Consumer Protection Bill 2018 Passed – Now Sue Cab Provider If You Miss Your Flight, Rs 50 Lakh Fine For False Ads!

The new bill replaces 30-year old Consumer Protection Act.

Consumer Protection Bill 2018 passed in Lok Sabha
Consumer Protection Bill 2018 passed in Lok Sabha

Finally, the much awaited Consumer Protection Bill 2018 has been passed in Lok Sabha. It was introduced in January 2018, and took 11 months to pass.

Consumer Protection Bill 2018 replaces 30-year old Consumer Protection Act of 1986.

Consumer Protection Bill 2018 introduces some major changes and amendments to the old law, thereby giving more power and more options to the consumers to fight businesses who provide sub-standard services.

We will soon discuss three main pointers of this new bill, but before that, a short history about this bill.


History of Consumer Protection Bill 2018

Last year, during a discussion in Rajya Sabha, Vice-President M. Venkaiah Naidu shared his experience of how a company sold him fake weight-loss tablets, and he was not able to do anything against the company.

Hearing that, Consumer Affairs Minister Ramvilas Paswan promised that a new Consumer Protection Bill will be introduced, which will give more power and more authority to the consumers.

As per Corporate Affairs Ministry, the objective of the bill is to “provide for the protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes.’’

Sue Your Cab Provider If You Miss Your Flight

As per the provisions of the new Consumer Protection Bill 2018, product liability action has been incorporated. This means, that due to a product or service offered, in case harm is caused to the consumer, then that service provider can be held accountable.

For example, a consumer can sue a cab provider in case his/her cab arrives late, and due to this, the flight is missed.

Various Consumer Protection channels will be established at City, State, and National level, which will also have Consumer mediation channels.

Fine and Jail For False Advertisements

Fake advertisements and false promises will now dealt with firmly. Till now, only warnings were issued, and the advertiser was ordered to pull down the said ad.

But now, prison term up to 10 years, and fine of Rs 50 lakh can be imposed.

Celebrities who are endorsing such products will be fined, and not jailed as some reports earlier stated.

Ecommerce Portals Will Be Held Liable For Fake Claims

Besides, an important rule for ecommerce will be implemented, in the new Consumer Protection Bill, 2018.

From now on, the particular ecommerce company will be held liable for fake promises, and fake products on the website. Besides, a dedicated nation-wide helpline has to be established, for all online shopping related complaints.

Online sales will also include multi-level shopping networks, teleshopping and ecommerce portals.

We are waiting for more details regarding the provisions of the new Consumer Protection Bill, 2018.

Sources: 1, 2, 3

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