GS- 2 Paper
Topic covered- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Consumer Protection Act, 2019
Context
Wide ranging discussions on the rules and regulations to be formed under the New Consumer Protection Act, 2019
About
- The Consumer Protection Act, 2019 will replace the Consumer Protection Act, 1986.
- It aims to address consumer vulnerabilities to new forms of unfair trade and unethical business practices in the fast-changing new-age economy.
Key features of the Consumer Protection Act, 2019
- Definition of consumer- according to act, a consumer is defined as a person who buys any good or avails a service for a consideration.
- It does not include a person who obtains a good for resale or a good or service for commercial purpose.
- It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.
- Rights of consumers- Six consumer rights have been defined in the Act.
- It includes the right to-
- be protected against marketing of goods and services which are hazardous to life and property;
- be informed of the quality, quantity, potency, purity, standard and price of goods or services;
- be assured of access to a variety of goods or services at competitive prices;
- Seek redressal against unfair or restrictive trade practices.
- Central Consumer Protection Authority– The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.
- It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.
- Penalties for misleading advertisement- The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.
- In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.
- Consumer Disputes Redressal Commission– Consumer Disputes Redressal Commissions (CDRCs) will be set up at the district, state, and national levels.
- Product liability- Product liability means the liability of a product manufacturer, service provider or seller to compensate a consumer for any harm or injury caused by a defective good or deficient service.
- To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Act.
Central Consumer Protection Authority
- Central Consumer Protection Authority (CCPA) has been constituted under the Consumer Protection Act, 2019.
- It aims to promote, protect and enforce the rights of consumers and it is empowered to investigate, recall faulty/unsafe goods and services, refund and impose penalties,
- The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations.
Functions of CCPA
- CCPA will carry out the following functions, including-
- inquiring into violations of consumer rights, investigating and launching prosecution at the appropriate forum;
- passing orders to recall goods or withdraw services that are hazardous, reimbursement of the price paid, and discontinuation of the unfair trade practices, as defined in the Act;
- issuing directions to the concerned trader/ manufacturer/ endorser/ advertiser/ publisher to either discontinue a false or misleading advertisement, or modify it;
- imposing penalties, and;
- Issuing safety notices to consumers against unsafe goods and services.
- CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year.
- For every subsequent offence, the period of prohibition may extend to three years. However, there are certain exceptions when an endorser will not be held liable for such a penalty.
GS- 2 Paper
Topic covered- Statutory, regulatory and various quasi-judicial bodies.
National Consumer Disputes Redressal Commission
About NCDRC
- The National Consumer Disputes Redressal Commission (NCDRC), India is a quasi-judicial commission in India which was set up in 1988 under the Consumer Protection Act of 1986.
- Consumer Disputes Redressal Commissions (CDRCs) will be set up at the district, state, and national levels.
Functions
- A consumer can file a complaint with CDRCs in relation to-
- unfair or restrictive trade practices;
- defective goods or services;
- overcharging or deceptive charging;
- The offering of goods or services for sale which may be hazardous to life and safety.
- Complaints against an unfair contract can be filed with only the State and National Appeals from a District CDRC will be heard by the State CDRC.
- Appeals from the State CDRC will be heard by the National CDRC.
- Final appeal will lie before the Supreme Court.
Jurisdiction of CDRCs–
- The District CDRC will entertain complaints where value of goods and services does not exceed Rs one crore.
- The State CDRC will entertain complaints when the value is more than Rs one crore but does not exceed Rs 10 crore.
- Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC.
Key Issues and Analysis
- The Act sets up the Consumer Disputes Redressal Commissions as quasi-judicial bodies to adjudicate disputes.
- The Act empowers the central government to appoint members to these Commissions.
- The Act does not specify that the Commissions will comprise a judicial member.
- If the Commissions were to have members only from the executive, the principal of separation of powers may be violated.
- The Act empowers the central government to appoint, remove and prescribe conditions of service for members of the District, State and National Consumer Disputes Redressal Commissions.
- The Act leaves the composition of the Commissions to the central government. This could affect the independence of these quasi-judicial bodies.
- Consumer Protection Councils will be set up at the district, state, and national level, as advisory bodies.
- The State and National Councils are headed by Ministers in-charge of Consumer Affairs.
- The Act does not specify whom the Councils will advise.
- If the Councils advise the government, it is unclear in what capacity such advice will be given.
Significance
- The Central Consumer Protection Authority (CCPA) provides executive remedies to the consumers.
- Deterrent punishment to check misleading advertisements and adulteration of products.
- Product liability provision provides to deter manufacturers and service providers from delivering defective products or deficient services.
- Ease of approaching Consumer Commission and Simplification of Adjudication process.
- Scope for early disposal of cases through mediation.
GS- 2 Paper
Topic covered- Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.
NOC online Application Processing (NOAPS)
Context
The Minister of State for Culture & Tourism (Independent Charge) launched an integrated NOC online Application Processing System for National Monuments Authority (NMA).
About NOAPS
- National Monuments Authority (NMA) designed, developed and implemented a web-enabled software application dubbed as ‘NOC Online Application Processing System’ (NOAPS).
- With the objective of introducing transparency, “NOAPS Non Single window system” was launched on September 2015.
- Further, “NOAPS Single window system” was officially launched in May 2016.
- This will help in online processing of applications requesting NOC for construction related work in prohibited and regulated area of ASI protected monuments.
- As of August 2019, NOAPS was limited to only 5 urban local bodies in Delhi and 1 civic body in Mumbai.
- Six New States will be part of this Integrated Online Application Portal with Urban Local Bodies Count. These are-
- Madhya Pradesh (378)
- Andhra Pradesh (110)
- Haryana (15)
- Punjab (10)
- Jharkhand (3)
- Telangana (1)
‘Smarac’ App
- The Smart ‘Smarac’ Mobile App is developed by Indian Space Research Organization (ISRO).
- ‘Smarac’ Mobile App enables the applicant traverses his plot and the geo coordinates of his plot along with the images get uploaded into the NIC portal along with the proximity and the approval status.
What is the need for NOAPS?
- Increasing population puts pressure on and often affects site or monument adversely.
- It is important that such growth around centrally protected monuments is properly regulated.
- It balances the needs of individuals and growth and development on one hand and requirements of preservation and protection of these monuments on the other.
Significance
- NOAPS will now ease the process to seek approval for construction in prohibited and regulated areas around Archaeological Survey of India (ASI) protected monuments in 6 states (517 local bodies).
- By this integration, the National Monuments Authority has made a humble effort towards the Mantra of “Reform, Perform and Transform”.
National Monuments Authority
- National Monuments Authority (NMA) under the Ministry of Culture, Govt. of India has been setup as per provisions of “The Ancient Monuments and Archaeological Sites and Remains AMASR (Amendment and Validation) Act, 2010”.
- Several functions have been assigned to the NMA for the protection and preservation of monuments and sites through management of the prohibited and regulated area around the centrally protected monuments.
- NMA had decided to Design, Develop and Implement a web enabled Software (S/w) application named NOC online Application Processing System (NOAPS) and launched it in the public domain.
- NOAPS is developed to automate the process of grant of NO Objection Certificate (NOC) for construction related work in the prohibited and regulated area.
