RGICS LEGISLATIVE BRIEF- The Consumer Protection Bill, 2018

The Consumer Protection Bill, 2018 introduces new legal protections for consumers, including class action lawsuits, product liability regulations, and penalties for misleading advertisements. It also establishes the Central Consumer Protection Authority (CCPA) to oversee consumer rights violations and unfair trade practices. While these are welcome changes, the Bill has several shortcomings—it fails to clearly define misleading advertisements, does not hold e-commerce platforms fully accountable, and lacks a strong enforcement mechanism. Although it improves consumer rights, it leaves loopholes that businesses can exploit, especially in online transactions and product safety.

Replacing the outdated Consumer Protection Act of 1986, the Bill expands consumer rights to match today’s digital economy. It introduces class action lawsuits, allowing groups of consumers to take legal action against companies for defective products or misleading claims. The CCPA is empowered to investigate complaints, recall unsafe goods, and penalize both manufacturers and endorsers, including celebrities promoting misleading products. The Bill also strengthens the consumer dispute redressal system, increasing the financial limits for cases handled at different levels.

Despite these improvements, the Bill doesn’t go far enough. It fails to define misleading advertisements clearly, leaving companies room to escape penalties. E-commerce platforms are still not fully accountable, as they can claim intermediary status under Section 79 of the IT Act, avoiding liability for fake or substandard products sold on their platforms. Moreover, the due diligence requirement for celebrity endorsers is vague, which could lead to higher costs for consumers without ensuring real protection.

The Bill is a much-needed update but falls short of truly protecting consumers. Without clearer rules, better enforcement, and stricter accountability for online platforms, businesses may continue to find ways around the law.

Keywords: Consumer Protection, Regulation, Product Liability, E-commerce, Misleading Advertisements, Redressal Mechanism, Endorsements, Class Action Lawsuits, Unfair Trade Practices, Central Consumer Protection Authority (CCPA)