Consumer Protection Watchdog Under the scheme of the Consumer Protection Act, 1986, businesses were accustomed to defending claims from consumers alone. The definition of a consumer which excluded transactions availed for commercial purposes, raised jurisdictional issues which itself led to frequent dismissals of complaints.
What the earlier Act did not have was an agency to proactively screen the market for prospective consumer rights violations and respond before a consumer suffered an injury due to defective goods or deficiencies in services.
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The proposed bill, vide Section 2 (4) contemplates a Central Consumer Protection Authority whose functions will now include, among other things, regulating matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class. As a natural corollary, the definition of a “Complainant” has been introduced which now not only includes a consumer or a consumer welfare organisation, but even the central and state government and the central authority specified in Section 2 (4).
Source: mondaq
