Laws existed even in Vedic period against unfair trade, says Modi

A new consumer protection law is on the anvil to crack down on misleading advertisements and simplify the grievance redressal mechanism, Prime Minister Narendra Modi said on Thursday. He was speaking at the inauguration of a two-day international conference on Consumer Protection for East, South, Southeast and Asian nations.

Mr. Modi said India’s consumer protection traditions dated back to 2,500 years. Laws existed even in the Vedic period to prevent unfair trade practices and adulteration of products, he said.

Extolling the virtues of the new Goods and Services Tax (GST), Mr. Modi said it was one of the key consumer-friendly reforms that his government had introduced. The GST would benefit consumers in the long run as prices would come down because of competition among manufacturers, he said.

Consumers can no longer be cheated as they can see on receipts the tax they are paying, Mr. Modi said.

“Today, we are in the process of enacting a new Consumer Protection Act, keeping in view business practices and requirements of the country. The proposed Act lays great emphasis on consumer empowerment,” he said.

The new law will replace the Consumer Protection Act, 1986, and is in line with the revised UN guidelines on consumer protection. It is currently with the Cabinet Secretariat and will be placed before the Cabinet for consideration soon, the Prime Minister said.

“Stringent provisions are proposed against misleading advertisements. A Central Consumer Protection Authority with executive powers will be constituted for quick remedial action,” Mr Modi added.

Prime Minister said protection of consumer interests is a priority of his government and is part of his resolution for New India. He listed the new Real Estate law, new Bureau of Indian Standards (BIS) Act, the Ujjwala scheme and direct benefit transfers as steps taken to empower consumers in the last three years.

The Real Estate Regulatory Act, for example, Mr. Modi said will protect home buyers from the builders’ monopoly. The builders will no longer able to cheat them by diverting funds of certain project to another. There will be a robust grievance redressal mechanism, he said.