Jaitley favours class action suits, revamping CPA for giving power to consumers
Updated: May 29, 2015 05:05:48pm
New Delhi, May 29 (KNN) In the wake of growing e-commerce trade in India, Union Finance Minister Arun Jaitley on Friday proposed revamp of the Consumer Protection Act to strengthen the rights of consumers amid evolving changes in the trade sector especially e-commerce.
The government has initiated a major step to rewrite the Consumer Protection Act so as to remove various lacunae in the Act that has been noticed over the last 28 years of its enforcement, Jaitley said while addressing the national conference on effective functioning of Consumer Fora.
With increase in consumer spending in view of Indian economy transforming in past 20 years, he said the Consumer Protection Act needs to be taken to the "next stage", giving powers to consumers to file Class Action suits.
"Globally the best practice is you allow a class action in these cases. You also have to regulate the extent of reviews and appeals and the grounds on which multiple appeals can be filed," he said.
The need to amend the Consumer Protection Act has also become inevitable after the boom in e-commerce.
"As we pass by, the volume of trade in ecommerce is going to increase... So that's how the trade is going to change. So under these circumstances we need a very powerful and efficient (consumer) fora," he said.
As we pass by, the volume of trade in ecommerce is going to increase... So that's how the trade is going to change. So under these circumstances we need a very powerful and efficient (consumer) fora," he said, while addressing the national conference on effective functioning of Consumer Fora.
With the concept of jurisdiction is getting diluted with goods being traded on ecommerce platform, he said that some judicial pronouncement or legislative intervention will have to determine those factors. These are the changes that are taking place.
The government is amending the Consumer Protection Act, 1986, to protect consumers, including those who are buying products from ecommerce platforms. As there is no direct contact between the seller and the buyer in ecommerce business, Jaitley said, the manner in which representations are made and the underlying principle of buyer being aware of the nature of goods and services itself will now have to be rewritten.
He also said although the concept of Class Action suit was there in the Act, it has never been used. Such suits can be filed by a group of people when there is a class or category of goods which is defective and a very large number of people have been deceived by it.
The Consumer Affairs ministry has factored in the concerns of stakeholders while drafting the amendments to the Consumer Protection Act, 1986.
Many changes have been proposed in the current law to protect consumer rights and simplify the judicial process to ensure speedy and inexpensive justice.
The Act provides for better protection of consumers interest. Under the law, consumer forums have been set up for the settlement of disputes. (KNN Bureau)
The government has initiated a major step to rewrite the Consumer Protection Act so as to remove various lacunae in the Act that has been noticed over the last 28 years of its enforcement, Jaitley said while addressing the national conference on effective functioning of Consumer Fora.
With increase in consumer spending in view of Indian economy transforming in past 20 years, he said the Consumer Protection Act needs to be taken to the "next stage", giving powers to consumers to file Class Action suits.
"Globally the best practice is you allow a class action in these cases. You also have to regulate the extent of reviews and appeals and the grounds on which multiple appeals can be filed," he said.
The need to amend the Consumer Protection Act has also become inevitable after the boom in e-commerce.
"As we pass by, the volume of trade in ecommerce is going to increase... So that's how the trade is going to change. So under these circumstances we need a very powerful and efficient (consumer) fora," he said.
As we pass by, the volume of trade in ecommerce is going to increase... So that's how the trade is going to change. So under these circumstances we need a very powerful and efficient (consumer) fora," he said, while addressing the national conference on effective functioning of Consumer Fora.
With the concept of jurisdiction is getting diluted with goods being traded on ecommerce platform, he said that some judicial pronouncement or legislative intervention will have to determine those factors. These are the changes that are taking place.
The government is amending the Consumer Protection Act, 1986, to protect consumers, including those who are buying products from ecommerce platforms. As there is no direct contact between the seller and the buyer in ecommerce business, Jaitley said, the manner in which representations are made and the underlying principle of buyer being aware of the nature of goods and services itself will now have to be rewritten.
He also said although the concept of Class Action suit was there in the Act, it has never been used. Such suits can be filed by a group of people when there is a class or category of goods which is defective and a very large number of people have been deceived by it.
The Consumer Affairs ministry has factored in the concerns of stakeholders while drafting the amendments to the Consumer Protection Act, 1986.
Many changes have been proposed in the current law to protect consumer rights and simplify the judicial process to ensure speedy and inexpensive justice.
The Act provides for better protection of consumers interest. Under the law, consumer forums have been set up for the settlement of disputes. (KNN Bureau)
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