2. What are the loopholes seen even after the promulgation of the Consumer Protection Act?
(a) Many suppliers are supplying foreign articles.
(b) Many manufacturers are endangering the life of the customer by making faulty
merchandise.
(c) Both (a) and (b)
ANSWER ACCURATELY OR I WILL REPORT!
Answers
Answer:
On December 20, 2018, Lok Sabha passed the Consumer Protection Bill, 2018 which is an attempt to replace the entire Consumer Protection Act, 1986. The question is whether there was a need to replace the entire act? What were such lacunas that a three decade old legislation needs to be repaired? Whether such bill will be successful in solving such lacunas? The following questions shall be answered by understanding the Consumer Protection Act, 2018 closely.
The sole purpose of the act introduced in 1986 was to protect the interest of the consumers. It was a shift from caveat emptor to caveat venditor. It was neither punitive nor preventive in nature, but compensatory. The intention behind the act was to provide simple, speedy and inexpensive redressal to the consumers’. But a change or shift in the consumer’s mindset, development of technology, and delay by Consumer Courts have hinder the effect or purpose sought to be achieved by the said act. This lead to an urgent need on part of the government to enforce laws that could effectively check consumer frauds and provide necessary amendments in the various provisions of the Act so as to introduce a more successful mechanism.
Thus, in order to solve the shortcomings in the Act of 1986, the Consumer Protection Bill, 2018 was introduced in Lok Sabha this year. The bill takes into account a rapid changes in consumer market places, deals with misleading advertisement and most importantly online and teleshopping. The Bill was referred to a Standing Committee for necessary changes and was approved by Lok Sabha recently.