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Consumer Protection Bill-2015 needs revision: IIM research- 28-Sep-2015

Ahmedabad: As the Centre has placed the Consumer Protection Bill, 2015 in the Parliament to replace the three-decade-old consumer protection law, a research paper on the Bill by Indian Institute of Management-Ahmedabad (IIM-A) stated that it needs a 'detailed revision'.

In the research paper, professor Akhileshwar Pathak of IIM-A critically analysed the Consumer Protection Bill-2015, and suggested that it should be rested on foundation of contract law and law of sale of goods.

The paper titled 'The Consumer Protection Bill, 2015: (Lack of) Rights of the Consumer to Terminate Sale Contract', stated that the law should have a specific provision for termination of contract from buyer's side.

Consumer protection law should rest on the foundations of contract law and the law of sale of goods. A new consumer bill has to conceptually express this foundation and the modifications it is bringing about in these laws, it said.

"Without this, the law (of consumer protection) would become unclear, conflicting and confusing. The Consumer Protection Bill, 2015 is not secured in its foundation and needs revision," the findings of the research paper showed.

It said that a rational basis for a consumer law is that a consumer has certain rights and a consumer can approach a court or a forum for the enforcement of the right. This very basic organising principle was not followed in the Consumer Protection Act, 1986, which has been copied in the 2015 bill.

"The rational and logical way of organising the law is to mention the rights of a consumer. A consumer could approach a consumer council for the redressal of the rights," it said.

"The bill does not mention the rights of a consumer. Under the Sale of Goods Act, 1930, buyer has certain rights to terminate the contract," it added.

On termination of the contract, the research suggested that a consumer should be allowed to replace the goods within 30 days from the date of delivery if it is found faulty. Even after the replacement, if the good is not found upto the mark, a consumer must have the right to get it replaced within 10 days.

It said a contract can be terminated on the basis of delay in delivery of goods.

"Consumer law builds on the foundation of contract law and the law of sale of goods. A rational and logical way of organising the law is to state the rights of the consumers. This needs to be done in the language and principles of contract law and the law of sale of goods," it said.

A consumer can enforce his rights by approaching a Consumer Council. A Consumer Council should have the corresponding powers to enforce the rights of the consumer, it said.

The Union Cabinet had in July approved the new bill as Consumer Protection Bill, 2015. Consumer affairs minister Ramvilas Paswan had tabled it in the Lok Sabha.

The new bill seeks to replace the 29-year-old law and proposes to set up a Consumer Protection Authority which will also have the power to initiate class suit against defaulting companies.

The new bill came against the backdrop of emergence of complex products and services in the era of growing e-commerce business in India that has rendered consumers vulnerable to new forms of unfair trade and unethical business practices.