File photo of Parliament House.
The Cabinet on Wednesday approved a new Consumer Protection Bill 2015 that seeks to replace a 29-year-old law and proposes setting up a regulatory authority to curb unfair trade practices.
The decision was taken by the Union Cabinet in its meeting held on Wednesday, sources said.
The Consumer Affairs Ministry aims to introduce the Bill in the ongoing monsoon session of Parliament.
The new Bill seeks to create a Consumer Protection Authority on the lines of the US and European countries for fast-tracking redressal of consumer grievances.
To ensure safe products to consumers, the Bill has a provision for product liability and provides enough powers to the regulatory authority to recall products and cancel licences if any consumer complaint affects more than one individual, sources added.
For speedy disposal of consumer court cases, the Bill seeks to provide 'mediation' as an alternative route to resolve disputes and also suggests simplified judicial process to ensure inexpensive justice.
The Bill provides for stringent penalty, including life imprisonment in certain cases and sufficient provisions for protecting e-retail consumers, they said.