YOU, THE CONSUMER COULD BE THE KING

It could become the biggest leap in consumer protection in India. The government plans to widen the reach of the Consumer Protection Act to include almost everything- from the flat you buy to the shares you apply for, and from the gadget purchased from an e-commerce site to your daughter's primary school. The amendments, proposed by the Department of Consumer Affairs and culled from the report of a working group set up in January, 2004, were framed to ensure that the Act becomes "more vibrant, dynamic and functional to enable it to tackle the emerging challenges of a liberalized market economy" while empowering the redressal agencies to render "quick justice".

The amended bill will come up for Cabinet approval by next month and if approved, it is likely to be introduced in the Winter Session of Parliament. Here's what it means for you:

• Overseas agencies operating through e-commerce sites or telemarketing cannot sell unless they maintain an office or appoints an agent in India.

• The overseas seller would have to provide details of its office or agent in the sale offer so as to "enable consumers to file complaint against sellers who are located outside India where the jurisdiction of the CPA cannot be extended".

• E-commerce and service providers will be bound to refund buyerswho did not have the opportunity to inspect the goods prior to purchasewithin 30 days if the goods and services are found defective.

• The buyer can file complaints against far away companies in the consumer forum of the area where he/she resides.

• The consumer does not have to seek permission of the court and the approval of the seller/service provider for filing a complaint in the district where he resides. "This will facilitate consumers to seek justice at their doorstep", the proposal says.

• Consumers can file complaints and pay court fees online since the district fora were being computerized.

• Municipal, health and medical services and primary education—whether free or for a feewhich are provided by statutory bodies or local agencies will now be under the purview of the Act.

• Consumers' privacy will be protected. Disclosure of personal information given in confidence by the consumer would "be construed as a deficiency in service". There is an increasing trend of violation of privacy of the consumers. Hence, it is considered essential to declare it as a separate right", the proposal says.

• The definition of trader will be expanded to include real estate promoters to protect the consumers from exploitation by builders or developers.

• Refusal to issue a bill or a cash memo by a seller would be made an unfair trade practice.

• Following Supreme Court's judgement that a share applicant could not move consumer courts as mere application did not make him a consumer, the government plans to entitle an investor who has not been allotted shares nor been refunded his money to seek remedy in the consumer court.

• The draft also provides more teeth to the existing provisions and consumer fora by cutting down on the redressal period, imposing heavier fines and providing equal footing to hapless consumer and the cash-rich seller in the way they approach the court.

(Courtesy: Amitav Ranjan, Indian Express, dated the 20th August, 2006)