Centre plans amendment to Consumer Protection Act

Authority, through the amendment to Consumer Protection Act, 1986, can impose penalty, conduct probe into violation of consumer rights

The Union ministry of consumer affairs, in a bid to quickly dispose off cases and thereby give much-needed relief to consumers, has proposed amendments to the Consumer Protection Act, 1986.

The ministry proposes to replace the present Central Consumer Protection Council by the Central Consumer Protection Authority by delegating it with punitive powers, Food & Consumer Affairs Minister Ram Vilas Paswan told Business Standard on the sidelines of a retail and FMCG conference.

This Act might be called the Consumer Protection (Amendment) Act, 2014. The authority can act against those traders who are violating consumer rights and can impose administrative penalty.

Besides, the authority can conduct investigations, either suo-motu or on a complaint, into violations of consumer rights and conduct search and seizure of documents/records/articles and other forms of evidence, summon delinquent manufacturers, advertisers and service providers to record oral evidence and direct production of documents and records. This apart, the authority can order recall of goods or withdrawal of services found to be unsafe or hazardous and order reimbursement of the price of the goods (or services) so recalled, to purchasers of such goods or services.

“In the present set-up, there are district fora, state commissions and the National Disputes Redressal Commission which compensate consumers for losses due to unfair trade practices or negligence. The experience is that a case which would have been resolved in no time, keeps on lingering due to adjournments and paperwork. Therefore, the ministry is mulling to set up the Central Consumer Protection Authority. The objective of the Central Authority will be to prevent the exploitation of consumers and violation of their rights and to promote, protect and enforce the rights of consumers. Cases can be resolved through mediation and conciliation,” Paswan said.

Paswan said that currently, retired judges were appointed on the consumer fora, state commissions and National Disputes Redressal Commission. However, the ministry was considering appointing members through the state public service commission at the state level and through the Union Public Service Commission at the national level. Currently, 621 district consumer fora, 35 state consumer commissions and the National Consumer Disputes Redressal Commissions at the apex level are functioning. “Till July 23, 2014, a total of 41,69,564 cases have been filed and 38,01,037 cases have been disposed in all these consumer fora, thereby achieving a disposal rate of over 91 per cent,” he informed.

M S Kamath, secretary, Consumer Guidance Society of India said, “It is not the law which has failed but the people who are running the system have failed it miserably. According to the regulation, the district forum is supposed to get rid of a minimum 75 cases a month. However, the output is 30 to 35 cases in most district fora which include cases which are dismissed by default or decided ex parte.” On the minister's proposal to revamp the present structure, Kamath, who has been fighting cases since 1989 onwards, opined that the government would be only replacing one set of incompetent people with another, whose competence was not known or established.

Shirish Deshpande, chairman, Mumbai Grahak Panchayat suggested that the minister and ministry needed to sit down with various consumer organisations before finalising the amendments. Courtesy: Business Standard

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6 Tips to Avoid Fraud Property Deal?

The real estate business is on the soar again with the key player’s investment. It is the perfect time topurchase a property in upcoming areas. Properties are the most profitable possessions people own; but at the same time one must be cautious about the fraud property deals. It is very imperative to make crucial choices of the property you are purchasing and the person you are buying the property from. There are a few approaches to evade fraud property deals and get a head efficiently with real estate business.

Research and analyze the market trends: If you are not aware of the real estate market, then it is best to do an extensive study and research on real estate trends. Make sure that the locality offers top line advancement as well as growth opportunities in the future. Moreover, it is better to approach Personal Financial Mentor; he can help you to take decisions based on market trends and can help you make lucrative investments.

Consult a reputed real estate agent: One of the best ways to avoid these property scams is to consult a reputed and well experienced real estate agent/ organizations. Take a feedback from users who have already been serviced by the real estate agent. You can pick up huge benefits by working with a reliable real estate agent and they are well proficient in getting you the best deal for all the properties you are planning to invest.

Personally inspect the property and get property appraisal: Before you purchase a property better to inspect personally and make sure that the property is free from legal issues. Keep in mind that the property should not be in agricultural land or a forest area. Employ a home inspector or approach a property valuation agency which can help you in the task.

Examine the property title deed and related documents: Careful examination of related documents and title deed is required to evade fraud property deal. It should be free from claims, encumbrances and mortgages. All the related documents should be transparent and genuine.

Appoint a legal consultant: Hiring a trusted and experienced lawyer can assist you in property matters and can also verify the documents legally. It will keep you away from phony and illegal dealings.

Maintain a comfort level with your real estate agent: Good professional agents will guide you and assist you in all the aspects until you close the deal. It will be better if you maintain a comfort level with your real estate agent. The comfort level by itself does not assure you a fraud free property deal; it helps you to have a reliable and supportive realtor. By SiliconIndia  

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In absence of any clear ad rules, liquor companies using social media to promote their brands

On Monday, @BudweiserIndia tweeted out a cheery message to its 6,000 followers: "How are you coping with your #MondayBlues! Keep your #Buds close and watch them disappear!" Does a tweet urging beer consumption constitute advertising? It's not quite clear. The rules banning the advertising of liquor products are at least about half a century old and predate the computer age. Social media is, naturally enough, a grey area.

No matter, liquor companies have been happily making use of the platform. Diageo, the world's biggest liquor company, the UB Group's Kingfisher beer, Budweiser, Tuborg, SAB Miller, Johnnie Walker are all active on Facebook and Twitter, using them to spread the message about their brands, complete with visuals. Kingfisher tweeted to its 44,000 followers on Wednesday from @kingfisherworld: "Okay so beerheads, here we go. Remember that 1st #KFBeer you ever had?

We want to know the story! Tweet to #HowIMetMyKFBeer right away!" Last year, Diageo's vodka brand Smirnoff, using the handle @SmirnoffIndia, had this to say: "You don't need an occasion to gift someone gold! Treat your friends to the royal taste of Smirnoff Gold today."

Samar Singh Shekhawat, senior V-P (marketing), UB, said: "The guidelines do not clearly define ban on social media and there are no clear clauses for liquor companies by the I&B (information and broadcasting) ministry on social media and online advertising."

However, he added that liquor companies tend to self-regulate by strictly following the age-restriction policies of the sites. "So whoever comes on to the social media platform are well within the drinking age limit. Whatever is not allowed on mainstream media we do not put on as digital advertising unless it is age gated," Shekhawat said.

However, while brands ask consumers to enter their age or date of birth in order to access their websites, there is no way to restrict the visibility of tweets.

A top executive at another leading liquor brand said, "The maximum traction that social media gets is from our core target audience. The absence of any law has made it easier for us to interact with them directly."

Arvind Sharma, former chairman of the Advertising Standards Council of India (ASCI), said social media messages from a manufacturer qualify as advertising.

"On the whole any message put out by a company is an ad," he said. "It is not an ad if it is created by the consumer.

While ASCI is yet to receive any complaint against liquor brand related to social media activities, "such messages should not be allowed as social media is also a form of media", he said.

Although the rules haven't been amended in the last 50 years, the spirit of the law can still be implemented, said Prem Rajani, managing partner of legal firm Rajani, Singhania & Partners. "While one may argue that you need a clear statute to pin them, I would say the current statute if interpreted properly should be enough to pin them down."

The information and broadcasting ministry hadn't responded to queries as of press time. Interestingly, tobacco brands in India which are also barred from advertising, have not taken the social media route. Even international brands such as Marlboro don't have any social media engagement with Indian consumers.

ET Retail.com

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