The Ministry of Consumer Affairs (“Ministry”) has, on November 11, 2019 issued Draft Rules which are to be notified under the provisions of the Consumer Protection Act, 2019 (“Act”). The Ministry has invited comments and suggestions from the stakeholders with respect to the said Draft Rules by 2nd December, 2019 after which the same will be taken into consideration.
Comments and suggestions are to be sent to dscpu-ca@nic.in or to Deputy Secretary (CPU), Department of Consumer Affairs, Room No. 461, Krishi Bhawan, New Delhi-110001.
Background:
Pursuant to the Consumer Protection Bill being released for public comments, it had received the President’s assent and was notified as an Act on 9th August,2019. The present Draft Rules have been published under the provisions of the Act on various topics that are required to be notified under the Act.
The Ministry has issued a total of 8 Draft Rules which are listed below with highlights:
- Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2019:
- To be recognized as an appropriate laboratory (as defined under the Consumer Protection Act, 2019) the applicant has to make an application, in triplicate, in the proforma prescribed by the Bureau of Indian Standards (“BIS”) with the relevant details to the Department of the State Government, which after proper scrutinization of the application and consultancy with the BIS will declare the laboratory as an “appropriate laboratory”.
[An appropriate laboratory is established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect.]
- Every seller should mandatorily have the following particulars in their invoice.
- Invoice Number and Date
- Customer Name
- Shipping and billing details
- Customer’s and taxpayer’s GSTIN
- Place of supply
- HSN/SAC code
- Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
- Taxable value and discounts
- Rate and amount of taxes
- Signature of supplier
- If the total amount shown in such invoice, or bill, or cash memorandum is inclusive of sale-price and tax, in respect of sales of taxable goods, and in such case, the words, “INCLUSIVE OF GST” should be mentioned in details.
- Further, if the bill or cash memorandum is issued by a seller in electronic form, the signature of the seller or his regular employee may not be given in such invoice, bill or cash memorandum.
- Each and every invoice should be numbered.
- Consumer Protection (Direct Selling) Rules, 2019:
- “Direct Selling” means marketing, distribution and sale of goods or providing of services as a part of network of direct selling other than under a pyramid scheme, Provided that such sale of goods or services occurs otherwise than through a “Permanent retail location” to the consumers, generally in their houses or at their workplace or through explanation and demonstration of such goods and services at a particular place; A direct selling entity sells goods through direct seller.
- In order to conduct direct selling, the direct selling entity must submit a self-declaration and undertaking in schedule-I of the Rules along with details of incorporation of business and other specified details.
- The direct selling entity should be the owner, holder, licensee of a trademark, service mark or any other identification mark which identifies the entity with the goods to be sold or supplied or services to be rendered.
- The entity must issue proper identity documents to its direct sellers and also maintain proper manual or electronic records of their business.
- The entity should maintain proper and updated website with all relevant details like contact information, management, products, product information, product quality certificate, price, complete income plan, terms of contract with direct seller and complaint redressal mechanism for direct sellers and consumers.
- The website should have space for registering consumer complaints and should ensure that grievances are addressed within 45 days of making such complaints.
- Further, the direct selling entity should not provide any information which is misleading or fraudulent.
- Consumer Protection (e-Commerce) Rules, 2019 : The Ministry had earlier issued the Draft e-Commerce Guidelines to protect the interests of the consumers by preventing fraud, unfair trade practices and protecting the legitimate rights and interests of consumers. Now, along the same lines, the Ministry has issued the Draft Rules in this regard.
- Consumer Protection (Central Consumer Protection Council) Rules, 2019:
- Aims at establishment of a council for the protection of consumers.
- The Central Government will set up a Central Consumer Protection Council with maximum 36 members. The council will function for 3 years after which it can be reconstituted.
- Central Consumer Protection Authority (Selection and Term of Office of Chief Commissioner and other Commissioners) Rules, 2019 :
- A Central Authority will be constituted which will be a body corporate by the name of Central Consumer Protection Authority (“Authority”) having perpetual succession and a common seal, with power, subject to the provisions of the Act and the rules and regulations made thereunder, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
- The Authority will consist of a Chief Commissioner with 5 Central and 5 Regional Authorities.
- Consumer Protection (Mediation) Rules, 2019: A Mediation Cell will be set up by the National Commission and will have a panel of mediators appointed by the National Commission and supporting staff comprising of a Coordinator, and other supporting staff as the National Commission may deem fit.
- Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the President and members of the State Commission and District Commission) Rules, 2019: This lays down the rules for the qualification, disqualification, resignation and removal of the President and Members of the State Commission and District Commission.
- Consumer Protection (Salary, allowances and conditions of service of President and Members of the State Commission and District Commission) Model Rules, 2019: These Rules deal with salaries, remunerations and allowances of members of the State Commission and the District Commission.
Source: Ministry of Consumer Affairs
