In order to protect consumers from faulty products and services, the government has decided to set up a regulatory body with the power to recall defective items and order reimbursement of the price of the goods and services.
"We have proposed amendment to the Consumer Protection Act for setting up of an executive agency 'Central Consumer Protection Authority' to promote, protect and enforce the rights of consumers enshrined in the Act," Food and Consumer Affairs Ministry Ram Vilas Paswan told PTI.
The proposed regulatory authority will have the power to examine the defective goods and file class action suits at National Consumer Disputes Redressal Commission (NCDRC) for speedy adjudication of the matter, he said.
The Minister said that the authority will have power to impose administrative penalty on those found violating any of the provisions of such Laws which seek to protect the interest of the Consumers. It will also have the power to recall any faulty goods and services,
Paswan said, "If any consumer items like seeds, car, toothpaste is found defective, the regulator will have power to conduct investigations, either suo motto or on a complaint, into violations of consumer rights."
On the basis of such investigations, the authority would have power to recall goods found to be unsafe or withdrawal of services found to be unsafe or hazardous and order reimbursement of the price of the goods, he said.
The objective of the authority is to prevent exploitation of consumers and violation of their rights.
It will have power to withdraw advertisements found to be false or misleading and declare as null and void if terms in consumer contracts are found to be unfair to the consumer.
The authority will also draw up code of conduct or fair business practices and direct the business to comply with the same, the minister added.
