The Government of India has made legal provisions by passing Consumer Protection Bill (CPB) to put a halt to misleading advertisements and for ensuring product liability, adding to the recently passed Real Estate Act.
The Act provides for returning the entire amount with interest to the buyer if a builder fails to deliver a property as promised in the advertisement or brochure. Besides, the BIS Act provides stringent punishment including imprisonment and heavy fine for those caught misusing the Indian Standard (IS) mark or not conforming to the standards in certain cases.
According to the CPB, both the manufacturer, promoter and even the endorsers will be liable for a heavy penalty including a jail term of up to five years for misleading advertisement besides provisions for product liability.
“The Government must stop all means of misleading consumers and alluring them to buy an item or service. The right information must be given to the consumer so that they could take an informed decision. It’s for the government to put mechanisms in place to shield customers from such menace,” Bejon Mishra, an Activist, said..
As per the Real Estate Act, the builder has to return the payment with interest to buyers who are affected by “incorrect, false statements contained in the notice, advertisement or prospectus or the model apartment, plot or building as the case may be.” The real regulatory authority is empowered to order “compensation” to consumers in case of misleading advertisements.