Understanding Consumer Protection Bill 2018

It has been interesting to see the drastic change that has taken place since the coming up f the act back in the year 1986 which had once stated the ground of formation to be a General relief .
The introduction to the previous act of 1989 so clearly states that , " to provide for better protection of interests of the consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers , disputes and for matters connected herewith."

The act had once earlier provided easy mechanism covering all customers in its circle depending upon the claim and the cause of action that arose due to the almost all possible wrongs such covered in the society. the customer is the biggest bearer who has since times been the target of not just products but also services and was stuck in a plethora of options available to file a case with the forum .

But with the passage of the Real Estate  Regulation Authority Act in the Parliament in the year 2016 a new wave of freeing customers from the frauds of the developers in all regims was seen to come into action . There after now the Passage of the new act in the Lok Sabha and readily passage for the Rajhya Sabha has taken it's shape . In no time shall the bill be turned into Law and henceforth replace the existing and obsolete law giving :-
1) More Power
2) High Compensation Amount
3) Popular faces used in promotion be held responsible
4) Ads which were defended by the contract act have been held to be a punishable offence in the eyes of law

Therefore in totality if at all any person puts out an advertisement after the passage of the law it shall be considered to be implemented on all grounds as have had been clearly stated within the Promotion/Advertisement .

The Constitution of the bench will now give more importance in comparison to the judicial authority presiding over which shall only be considered necessary for the passing of relifs/orders/judgment.

Hope this 2019 bags in utmost other possible scope of changes before the bill converts into Law.

The existing bill shall be levived until then which means all existing cases shall be adhered to that only unless filed after the new law.

As stated , the Bill shall also :-

1) seek to set up a central consumer protection authority (CCPA) to "promote establish authorities for timely and effective administration and settlement of , protect and enforce the rights of the consumers."
2) The CCPA can act on complaints of unfair trade practices, issue safety guidelines, order product recall or discontinuation of services, refer complaints to other regulators, and has punitive powers such as imposing penalties.''
3)The Bill also seeks to provide Consumer Disputes Redressal Commissions at national, State and district-levels to look into consumer complaints.

Consumer rights
The Bill defines “consumer rights" as the right to be protected against the marketing of goods, products or services which are hazardous to life and property. It is also the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services; and to be assured of access to a variety of goods, products or services at competitive prices.

It also includes the right to be heard and to be assured that the consumer’s interests.


Seek redressal against unfair or restrictive trade practices or unscrupulous exploitation of consumers;


The right to consumer awareness.

Product liability
The Bill also envisages provisions for product liability action on account of harm caused to consumers due to a defective product or by a deficiency in services. Also, the case can be filed from anywhere, unlike the existing law .



The CCPA has the authority to:-
1)direct the removal of a misleading advertisement,
2)take punitive action such as imprisonment or imposing penalties on the advertiser and seller,
3) barring a person from endorsing the product or service for up to a year.
4)The Bill also lists punitive actions against those who are found manufacturing, storing, distributing, selling, or importing products that are spurious or contain adulterants.

Comparison of the Consumer Protection Act, 1986 with the Consumer Protection Bill, 2018 Ambit of law 1986 Act:
All goods and services for consideration, while free and personal services are excluded 2018 Bill:
All goods and services, including telecom and housing construction, and all modes of transactions (online, teleshopping, etc.) for consideration.
Free and personal services are excluded.
Unfair trade practices (Defined as deceptive practices to promote the sale, use or supply of a good or service.) 1986 Act: Includes six types of such practices, like false representation, misleading advertisements.

Alternate dispute redressal mechanism:
Mediation cells will be attached to the District, State, and National Commissions.

Penalties :
If a person does not comply with orders of the Commissions, he may face imprisonment up to three years, or a fine not less than Rs 25,000 extendable to Rs one lakh, or both.


E-commerce :
Defines direct selling, e-commerce and electronic service provider. The central government may prescribe rules for preventing unfair trade practices in e-commerce and direct selling.

The new Bill adds three types of practices to the list, namely:
(i) failure to issue a bill or receipt;
(ii) refusal to accept a good returned within 30 days;
(iii) disclosure of personal information given in confidence, unless required by law or in public interest.


Contests/ lotteries may be notified as not falling under the ambit of unfair trade practices.

CCPA may:
(i) issue safety notices;
(ii) pass orders to recall goods, prevent unfair practices, and reimburse purchase price paid;
(iii) impose penalties for false and misleading advertisements.

Pecuniary jurisdiction of Commissions 2018 Bill:
District: Up to Rs one crore;
State: Between Rs one crore and up to Rs 10 crore;
National: above Rs 10 crore.