CONSUMER PROTECTION [AMENDMENT] BILL 2011- HOW FAR IT WORKS TO STRENGTHEN THE ACT

Consumer protection [ amendment ]Bill 2011 has been submitted before the parliament on 16.12.2011 for approval with high hopes of its taking the shape of fourth amendment to the act.The significant features of this proposed amendment bill are as hereunder :

 

Additions  in the section 2 of the act:-

!)Issue of receipt or cash memo made mandatory after selling the goods or rendering the services.

!!)Seller cannot refuse to take back the defective goods or withdraw the services or refuse to refund the consideration when request is made or defect is notified by the consumer within a period of thirty days from the date of purchase made or services taken.

!!!) Disclosure of confidential information of the consumer by service provider amounts to unfair trade practice.

!V) Certain clauses in the agreement between the consumer and service provider are termed as unfair contract such as –a)requiring excessive security deposit,b)inappropriate penality in compare to loss incurred  in case of breach of contract C)refusal to accept early payment of debt D)termination of contract without reasonable cause.

                       

Additions/ changes made  to section 10 of the act:

            !) Composition of consumer forum-number of  members can be more than three and number of female member be at least one ,meaning thereby it can be more than one

            !!) “Not more than 50% Members from judicial background ”- this is an additional provision

            !!!)In the Qualification for a member ‘knowledge of consumer affairs ‘ is also onemore  option alongwith other areas of knowledge

!V) Staff and officers for these consumer redressal agencies are specifically defined for the purpose of their placement, pay structure etc.

V) Govt can send back the recommendation made by the selection committee for selection of members /presidents for re-consideration if any candidate found not fit.

V!)Retired Members/Presidents cannot plead before the forums/state commission in the state where they worked as Member/ President.

 

Additions/changes  to sec 14&15 of the Act :

            !) In case of appeal before the higher consumer commission ,deposit is to be made 50% of the decreetal amout[the words either 25 thousand or 50 thousands etc.are deleted]

 

Additions/changes made in sec.16 of the Act :

            !) Age of member in state commission increased from 35 to 45 yrs.and experience in the areas as specified  earliar increased to 20 yrs from 10 yrs.

 

 Additions/changes made in sec.19 of the Act:

            !) The provision  to Review of its own  order to state commission is added

 

Additions/changes made in sec.20 of the Act:

            !)  Age of member in National  commission increased from 35 to 55 yrs.and experience in the areas as specified  earliar increased to 30 yrs from 10 yrs.

 

Additions/changes made in sec.22 of the Act

            !) Additional provision made empowering National commission to constitute committee, call expert opinion,to appoint local commissioner etc if felt necessary.

 

 Additions/changes made in sec.25 of the Act

            !) Additional provision for sending the order for execution to civil courts of the jurisdiction where Opposite party resides /have their office .

!!)Penality clause for non-compliace of the order for each day delay

!!!)Follow up from the revenue collector after issue of certificate to him for compliance of order

 

Additions/changes made in sec.28 of the Act

            !) central govt. from national commission and state govts from state commissions may ask for performance report from the respective commissions /forum

 

VIEWS AND OBSERVATIONS :

 

            The above proposed amendments include as many as ten new sections which if approved ,will put  the consumer at very high pedestal.Very thoughtful  provisions have been added to imrove the functioning of this three tier consumer redressal system which will bring a new look to the forums and commissions .Apart from this ,individual consumers will see a great change in the market too. Traders and shopkeepers will have to remove all the boards hanging in their shops-‘goods once sold cannot be taken back’ or so on. Unfair contracts will no more cheat the consumers and consumer will enjoy equal bargaining power with the seller.The most important irritating factor-your cellphone numbers cannot be disclosed for marketing calls without your consent.Consumer will have right to get receipt for whatever he has paid because issuing the same  is going to be compulsory .

However some issues which had been coming in the way before the forums while dealing with the complaints have yet not been touched ,such as-

 

Section 24 –In this  section , the words ‘if  no stay has been given by the appellant court in an appeal if preferred ’-could be replaced in place of ‘if no appeal has been preferred ’

[Note –At present forums are unable to go ahead with execution of their order once appeal is registerd with the appellant court but at times neither it is admitted nor stay granted but opposite party enjoys time ]

 

            Qualification of Members of the consumer forum could have been proposed to be  enhanced and LLB degree be made necessary  for the reasons below :

                        !) Due to having no knowledge of law ,member in the forum has the least say and participation in decision making process .It has become one man show for all practical purposes and the purpose of having three members in the fara is defeated.

!!)Burdon of President is not shared by the members due to lack of legal

  background  causing pendency of cases to be decided .

In the provision of re-appointment of Members as well as Presidents ,the word ‘another term’ could be explained as to whether it means only one more term or an- other term after completion of any  term. Does it bar third term in case age of the member/president  permits to continue .Process of re-appointment could also  be made clear  by making provision  of sending/ recommending  the names of sitting members/ Presidents to selection committee before completion of the term by the state (as circulated guidelines by the central ministry of consumer affairs to all the states  vide circular dt 20 June 2005 ) This could have surely solved the problem of posts of members/president falling vacant for long time making forums at times non-functional .

            At the end ,we wish this Bill be passed by our parliament and we may see this  unique judicial system at the  new horizon for the consumers.

 

 Author: Dr Prem Lata

Member Consumer Forum ,Delhi

 

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