Annexed Writeups with Proposed Amendments (Consumer Protection Act 2019)

ANNEXURE-A

Has CCPA come into its form as provided in the act?

It was as back as in 2015 when first draft of the new Act 2019 was prepared and thereafter numerous meetings seminars were held to make the Act more comprehensive. Parliamentary standing committee worked hard to bring all possible changes required to meet the need of the changing scenario in the country.

The most important was the constitution of Consumer Authority at National level to curb the unfair trade practices which continued in spite of Consumer Commissions orders in number of cases. Commission has the power to get orders implemented when consumer files application for execution. Taking advantage of the fact that commissions cannot take cognigence of non -compliace by big business houses, misleading advertisement already banned by commission orders continued and no concept of court could be initiated. Hence the focus was on

Creation of Consumer Authority was the paramount objective to solve many problems faced by consumers. This was basically meant to initiate ‘class actions’ against such business bodies to help the consumers at large whereas judicial consumer commissions can give relief to only those who file the case before commissions.

Finally Central Consumer Protection Authority came into existence with the repeal of old act and enactment of new Consumer Protection Act 2019 in July 2020.

The real question here is as to whether present CCPA is working matching with the tone of Act and its provisions/

Beyond any doubt number of positive steps favoring consumers are taken up by the Ministry and have also brought good results too. But is CCPA approachable for the general public at large for registering their complaint if they want to avoid judicial process before consumer commissions?

So far, its setup and system are concerned, the entire dealings are being done by and under Ministry by designating an IAS officer as Director General (CCPA) as an additional charge who is already working for consumer affairs. Neither there is a separate and independent body nor it has a separate system to handle the complaints from the consumers.

The glaring points which need to be addressed if CCPA is to work as was thought of by the legal luminaries at the time of framing the concept of Consumer Authority –

1. Section 10 -27(Chapter111 of the Act)

Section 10 (2)

Appointment of Chief Commissioner and Commissioner of the Authority -so far not done for exercising the power under the act and discharge its duties. It is only an Ad hoc basis arrangement by giving additional charges to officers already working for Ministry

Section 10 (3) further indicates that a separate headquarter of Central Consumer Authority shall be set up in the National capital Region of Delhi and shall have regional offices in the other places in India.

Section 13 (1) &13(2) Neither CCPA as on date is an independent body nor required appointments have been made to develop an independent system of complaint hearing as per section 13 (1) &13(2) of the act   which specify the salaries and allowances of the employees so recruited. Further section 13(3) also requires a panel of experts and professionals to assist the Authority in the areas as mentioned under this section

Section-15

This provides that central Authority shall have independent investigating wing headed by director general along with   Director, joint director, Dy director and assistant director who have experience and qualification in investigation.

The above provision is to be read with section 19(1) &19(2) which empowers the Authority to refer the matter to regulatory established under any law with its prima facie report prepared under section 19(1). But what is happening as of now that CCPA has no unrepentant investigation wing even after passing almost four years and compliant are directly sent to other regulatory bodies such as NABL, IMC, RERA, FSSIA and other related bodies. This practice defeats the very object of the Authority. These regulatory bodies are disciplinary bodies in nature and do not serve the purpose of investigation suggesting relief to consumer.  Even otherwise investigating agency constituted under CCPA should adopt the parameters specifies under CP Act which is different from the purpose of regulatries constituted under other laws. This provision is for taking additional help and counter checks by concerned agencies and cannot be considered parent agency under consumer law.

Hence establishing Investigating agency by CCPA under consumer law is the most desired thing to be considered to meet the very purpose of CCPA.

Section 19 coupled with Section 17

Last but not the least section 17 provides the procedure for filing complaint. It reads –

‘A complaint related to violation of consumer rights or unfair trade practices or false or misleading advertisements which are prejudicial to the interests of consumers as a class may be forwarded either in writing or in electoral mode to any one of the authorities …<

This provision no where states that only govt, state govt or NGO can forward the complaint. But at present complaint filed by individual consumers or group of consumers are not entertained even when prima facie case is made out in clear terms. This practice does not fulfil the requirement of section 19 (3) wherein Investigating agency may call upon a person (any person) who made the complaint.

As per practice CCPA is not approachable by individual person or persons for referring their complaint with a view that NCH and other portals are there to help them. It is totally mis-conceived to say so because NCH or GAMA portal do not redress the grievance, just help ang guide.

With this situation when CCPA is not an Autonomous body with is complete infrastructure does not serve the very concept of consumer Authority

There is a need to re-visit the provisions and re-organize the entire system in the interests of consumers.

HIGH LIGHTED POINTS

1. Separate Autonomous body with its complete infrastructure is to be established
2. Working of CCPA from present system of Ad hoc basis be converted to regular functioning with required staff and officers, commissioners with delegated powers
3. Investigating wing with qualified experts in different fields be set up in the light of consumer law provisions. Other regulatory set up under other law be the assisting agency for counter checks
4. Individual consumer &consumers in more number be permitted to make complaint and proper arrangement be made to check the criteria if prima facie case is made out by consumer or consumers.

By Dr Prem Lata