Concerned over the need to contain deceptive practices by corporate, the Planning Commission has made a case for setting up a National Consumer Protection Authority to deal with misleading advertisements.
The Commission in its draft document for the Eleventh Plan has argued that it was necessary to create a new body to bridge the legal gap to deal with restrictive trade practices following the proposed winding up of the Monopolies and Restrictive Trade Practices Commission.
There would be a gap in legislation to be caused by proposed winding up of MRTPC with respect to unfair trade practices. The gap can be filled in be establishing NCPA through enactment of National Consumer Protection Authority Act, the document said.
The MRTPC, which has been looking into various unfair trade
Pointing out that there is serious shortfall in achieving consumer welfare because of the deficiency in quality infrastructure in the country, the document said, regulatory deficit in many products and services impact on health, safety and environment of consumers.
Although there is a multiplicity of regulatory and standardisation conformity assessment bodies and proliferation of certification and inspection bodies, the Commission said mandatory standards have not been prescribed for various essential goods, including toys.
Pointing out that there was absence of quality culture in the country, the document stressed that urgent action was needed to create consumer awareness.
