Consumer Protection Bill 2018: key points every consumer should know

Consumer Protection Bill 2018: key points every consumer should know: The Lok Sabha newly approved the Consumer Protection Bill 2018, the first step in the direction of addressing disputes encountered by Indian consumers. In January in the course of the last winter sitting, the bill which was announced in the Parliament is anticipated to discourse all current concerns on the subject of protection of consumer rights.


  • The bill will now be taken up for debate and subsequent passage in the Rajya Sabha
  • It aims at refining the three-decade-old Consumer Protection Act, 1986
  • The bill also proposes to form an executive committee for better assessment of consumer protection norms

This will now be taken up for discussion and following track in the Rajya Sabha. The new bill propositions is setting up a Central Consumer Protection Authority (CCPA) and is aiming at filtering the three years old Consumer Protection Act, 1986.

If this bill is approved then most of the companies who do fake advertisements will get in trouble as well as the consumers will get more powers than ever before.

So, we are here to provide you the seven key points you should know about the bill:

Policymaking agency

The new bill will lead to creation of a decision-making committee under the Central Consumer Protection Act, 1986 (CCPA). This organization will be tasked with keeping customers from any biased sale and purchase carry out, as well as false advertisements. If the committee commands, it can even take-off a class act proceeding contrary to the concerned company.

The authorized committee can also command a company to recollect malfunctioning products or issue repayments to consumers. Sources showed that the CCPA will be centred on the US Federal Trade Commission.

Additional power to the customer

If the bill passes in Rajya Sabha then it will also propose more power to customers. The bill commends consumer disagreements to be heard by a solitary body and not at distinct levels such as district, state and national. Moreover, there will also be a customer intervention cell, which will look into disagreements that can be determined speedily.

Sponsors of fake advertisements to be held accountable

If any celebrity or well-known individual is found misleading consumers through fake commercials then they will also be answerable.

As penalty, manufacturers and producers of the products and services will get a minimum 2 years sentence in jail with a least possible fine of Rs 10 lakh. If the concern matter is serious then more strict actions will be taken against the producers of the product as well as services.

However, celebrities will not get jail for promoting fake products but have to pay a certain amount to fine.

More answerability

The bill aims to make the accountability of producers, companies or service sources will not be inadequate to just one group of consumers. Somewhat, it will take into the justification of all consumers who have been affected by a specific manufactured goods of a company.

Constrain on false grievances

The new bill also recommends constraining on false grievances by persons in contradiction of companies. A person found to be filing fake complaints will get a fine of Rs 10,000 to Rs 50,000 according to the seriousness of the concern matter.

Firmer stance

If any product causes any harm to the consumer whether it is an injury, death or any kind of physical injury then, all the parties involved in that product will be held answerable or responsible for the same. It might be the manufacturer, producer and seller; all will be accountable for the cause.

Serious action will be in use if there are flaws in manufacturing or incorrect manufactured goods labelling surrounded by other issues.

New terms for e-commerce businesses

Obligation for e-commerce companies is also set to upsurge as now they have to share more info with the consumer. All e-commerce businesses will be mandatory to reveal details on how these companies give customer data. Also, the bill also makes e-commerce companies as service sources, thus increasing accountability in circumstance of a mistake.