The consumer protection act 2019 gives a more important place to the interests of consumers in the world of commerce. It brings online commerce under the purview of the act. It also provides for establishment of a central consumer protection authority whose job is to prevent violation of consumer rights, unfair trade practices and false or misleading advertisements.
The new act also introduces a generic product liability clause under which compensation claims may be raised for harm caused by a defective product or defective service. It has provisions to help avoid frivolous claims and vexatious litigation.
When an individual or a celebrity endorses a product or a service, they would be advertising it. If such advertisement is false or misleading and is prejudicial to the interest of any consumer, such advertisements maybe directed to be discontinued or modified. Over and above this, penalty by way of fine up to INR 10 lakhs can be levied. The celebrity endorser could also be barred from advertising the product for a period of one year. The safeguard for the endorser is that there would be no penalty if he she has exercised due diligence to verify the veracity of the claims being made.
In a related development the Ministry of Health and Family Welfare has finalized an amendment that will ban advertisements promoting fairness creams, health drinks claiming improvement to the height of children and products promoting anti-ageing remedies – with potential jail time as well as stiff fines for or offenders. The country has a long-standing obsession with fair skin and according to a Market Research report, the fairness cream industry is likely to have revenues of more than INR 5,000 crores by 2023.
It appear that consumer rights are being brought into focus and better social values are also being promoted.
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