The Lok Sabha on Thursday passed the Consumer Protection Bill, 2018. The bill, which was introduced in the Lok Sabha in January, mandates a harsh penalty and even imprisonment for misleading ads and food adulteration. The bill will now go in the Rajya Sabha for discussion. Once passed, the bill will replace the Consumer Protection Bill, 1986.
The Consumer Protection Bill, 2018, is also expected to put an end to such misleading and false claims by manufacturers and service providers. However, some sections of the bill had sparked a debate across the legal, advertising and talent management industry, especially the clause that could lead to punitive measures and ban on celebrities for endorsing misleading advertisements.
The provision in the new bill, which recommends product liability action if it harms the consumer due to its quality or flawed services, has also been severely criticised. Experts say it is “unjustified” to hold a celebrity liable for merely appearing or lending his or her voice or face. The advertising world, too, has a different take on the new bill. While a section of adfilm makers have questioned the relevance of imposing fines and punishing the celebrities, others have questioned the real intent of the bill.
Here are some features of the bill :
The bill aims to protect consumers’ interests through a redressal mechanism that would ensure timely and effective settlement of disputes.
It proposes a central consumer protection authority to look into the issues related to false or misleading ads.
It provides for fines up to Rs 10 lakh and a one-year ban on celebrities for any endorsement.
If the offence is repeated, it could lead to a fine of Rs 50 lakh and a three-year ban.
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