A Bill seeking to set up a regulatory authority having powers to recall products and cancel licences of defaulting companies, including e-tailers, was introduced in the Indian Parliament’s low house, the Lok Sabha today.
The new Bill seeks to create a Consumer Protection Authority, which will also have the power to initiate class suit against defaulting companies and will fast-track the redressal of consumer grievances.
Explaining the rational behind bringing the new bill, sources said that misleading advertisements, tele-marketing, multi-level marketing, direct selling and e-tailing pose new challenges to consumer protection. Hence, there was a need to modernise the act to address the situation effectively.
The bill comes 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