Update law to foil e-tail frauds, say Jaitley, Paswan

Need To Allow Class Action Suits: FM
Two Cabinet ministers came down heavily on errant e-commerce companies on Friday as they strongly pushed for revamp of the Consumer Protection Act to protect the rights of consumers against such players. The proposed amend ments take care of new-age online and off-line models, including e-com merce, teleshopping, direct selling or multi-level marketing.Finance minister Arun Jaitley stressed on the need for a provision where consumers can file class action suits against fraudulent sellers, par ticularly in the era of e-commerce which is dynamically changing the marketplace. “Globally , the best prac tice is you allow class action in these cases. You also have to regulate the ex tent of reviews and appeals and the grounds on which multiple appeals can be filed,“ he said.

Consumer affairs minister Ram Vilas Paswan said consumers were of ten taken for a ride at three levels “First, they are allured by misleading advertisements. Subsequently , when they buy an item online, either they don’t get it in time or the product they get is sub-standard. There is no relief after you buy an item. The transac tions are happening online and the buyer and seller never meet,“ the minister said.

Jaitley and Paswan said proposed amendments in the Act will address such concerns and protect consumers rights. “The volume of trade in ecom merce is only going to increase.. That’s how trade is going to change. So, under these circumstances, we need a very powerful and efficient (consumer) forum. The manner in which representations are made and the underlying principle of buyer being aware of the nature of goods and services itself will now have to be rewritten,“ Jaitley said while addressing a conference on working of consumer forums.

To address these concerns, a clause has been added in the proposed bill stating that transactions made through any mode for buying any goods and hiring or availing any service will be covered under the law.

For the full report, log on to http:www.timesofindia.com

Misleading ads may soon invite action

In a bid to crack down on false and misleading advertisements, the consumer affairs ministry is considering filing cases against such advertisers. In the last three months, the ministry has received 114 complaints and many of them relate to the health and education sector.

“We have launched a portal where consumers can lodge complaints. We are compiling details and these cases will be investigated. Since in most cases misleading advertisements impact huge section of society, we will file cases on behalf of consumers seeking compensation for the damage caused,“ a ministry official said.

According to data compiled by the consumer affairs department, misleading complaints also relate to financial services, food and real estate sectors. Dipak Dash For the full report, log on to http:www. timesofindia.com

 Source: The Times of India
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Author:

Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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