What Reforms Are Proposed to Improve Product Safety in India?

India has been progressively working towards improving product safety and consumer protection through regulatory reforms. With the increasing demand for safer products and rising concerns over the quality of goods in the market, various reforms have been proposed to tighten the standards, promote accountability, and ensure better enforcement of product safety laws.

Proposed Reforms to Improve Product Safety in India

Strengthening the Consumer Protection Act (2019)

Reform Overview:

The Consumer Protection Act, 2019, which replaced the earlier 1986 Act, already introduced provisions to improve product safety and liability. Further reforms are being considered to enhance provisions on product liability, making manufacturers more accountable for defective products.

Proposed Changes:

The government may introduce more stringent safety requirements for products sold in the market, as well as enhanced penalties for manufacturers and sellers who fail to meet these standards.

Product Recall Mechanism

Reform Overview:

The government is considering a more effective product recall mechanism to remove dangerous or defective products from the market. Currently, voluntary recalls are sometimes insufficient or delayed.

Proposed Changes:

Legal provisions may be introduced to require companies to recall defective products immediately upon detection of a defect that could harm consumers. This would apply to sectors like food, medicine, and consumer electronics.

National Standards and Testing of Products

Reform Overview:

There is a proposal to make product safety standards more stringent and to establish a comprehensive system of testing and certification for products across industries.

Proposed Changes:

More emphasis on mandatory certification from authorized bodies, such as the Bureau of Indian Standards (BIS), for consumer products, especially in high-risk categories like electrical appliances, food, and pharmaceuticals. Stricter regulations for the import of goods may also be implemented to prevent the sale of substandard products.

Stronger Enforcement by the Consumer Protection Authority

Reform Overview:

The Central Consumer Protection Authority (CCPA) is already tasked with addressing consumer grievances. The reform proposal suggests bolstering its power to take proactive action against unsafe products.

Proposed Changes:

The authority could be given more powers to investigate companies directly, conduct random safety checks, and take legal action against manufacturers for unsafe products. Additionally, penalties for violating product safety norms may increase.

Mandatory Product Safety Labels

Reform Overview:

To improve consumer awareness, there is a proposal to make product safety labeling mandatory, especially for products with potential risks such as chemicals, electronic gadgets, and pharmaceuticals.

Proposed Changes:

Labels would provide consumers with clear information on the safety standards met by the product, potential hazards, and how to use the product safely.

Introduction of Product Liability Insurance

Reform Overview:

A proposal has been made to encourage manufacturers and sellers to take out product liability insurance, ensuring that victims of defective products are compensated even if a company fails to take responsibility.

Proposed Changes:

This could help ensure that consumers who suffer harm from faulty products receive timely compensation, regardless of the manufacturer's ability to pay.

Adopting International Standards for Product Safety

Reform Overview:

India is also looking at aligning its product safety regulations with global standards to ensure the highest level of protection.

Proposed Changes:

This includes adopting international safety standards, such as those set by the International Organization for Standardization (ISO), to bring more uniformity in product safety across markets.

Public Awareness and Education on Product Safety

Reform Overview:

Along with regulatory changes, there is a proposed increase in public awareness programs that educate consumers about product safety and their rights under consumer protection laws.

Proposed Changes:

Awareness campaigns will educate consumers on how to identify unsafe products, report complaints, and understand the recourse available to them under the law.

Example:

If a manufacturer of kitchen appliances is required to have their products certified by the Bureau of Indian Standards (BIS), it would ensure that their pressure cookers, blenders, and other cooking devices meet stringent safety standards. If a defect is later found in a product, it could trigger a mandatory recall and provide consumers with immediate access to compensation through a newly introduced product liability insurance system.