A Bill seeking to set up a regulatory authority having powers to recall products and cancel licences of defaulting companies got introduced in Lok Sabha yesterday.
The new Bill seeks to create a Consumer Protection Authority which will also have the power to initiate class action suits against defaulting companies which will provide the ease of fast track redressals.
The proposed law assumes importance as there is growing concern over safety of consumer products and services especially after the Maggi controversy.
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 of unfair trade and unethical business practices.
The Bill also provides for stringent penalty, including life imprisonment in certain cases which would prove as a threat and the traders would not indulge in misrepresenting or defrauding the consumers.