Team JGJ

08 Oct 2024 NEW DELHI: In its recent ruling, the Delhi High Court has upheld consumer commissions’ power to issue arrest warrants under the Consumer Protection Act, 2019 (CP Act), stating that the State Consumer Disputes Redressal Commission (SCDRC) and the National Consumer Disputes Redressal Commission (NCDRC) have judicial powers equivalent to first- class “judicial magistrates” for enforcing compliance with their orders. Justice Sanjeev Narula, in a detailed judgment, declared the enforcement actions initiated due to VXL Realtors’ failure to comply with an order from the SCDRC, which mandated a refund and compensation to a consumer, were within the commission’s jurisdiction. ” Section 72 of the CP Act makes it abundantly clear that the objective of the provision is to enforce the orders of Consumer Commissions, by holding a company and its officers accountable for defying the directions of the Commissions, ” the court stressed. The case stems from a 2016 complaint filed by a consumer Naveen Kumar Aggarwal, who alleged unfair trade practices and deficiency in services by VXL Realtors related to a real estate deal. The SCDRC, in one of its orders, had directed VXL Realtors to refund the full amount paid by the complainant, along with interest and compensation for the inconvenience caused. Despite this, VXL Realtors failed to comply, leading Aggarwal to file an execution petition in 2022, which eventually resulted in arrest warrants being issued against the company’s directors, including Rakesh Khanna. Khanna, who was appointed director of VXL Realtors in 2020, filed a writ petition seeking to quash the arrest warrants. He contended that since the alleged deficiencies in service occurred between 2010 and 2013—prior to his appointment—he should not be held accountable for the company’s past failings. Source: New Indian Express

08 Oct 2024 Ola Electric was served a show-cause notice by the Central Consumer Protection Authority on Monday, October 7, for alleged violation of consumer rights, misleading advertisements, and unfair trade practices. The notice to the electric vehicle (EV) manufacturer comes amid mounting customer complaints about the functioning and service quality of Ola Electric scooters. “The Central Consumer Protection Authority has provided a timeline of 15 days to the Company to respond to the show cause notice. The Company will respond to the Central Consumer Protection Authority within the given timeframe with the supporting documents,” read a stock exchange filing by Ola Electric CFO Harish Abichandani. Shares of the Bengaluru-based firm tumbled by 9.1 per cent to Rs 89.14 on Monday, with its market capitalisation falling below $4.75 billion for the first time since Ola’s IPO listing in August. Ola Electric, which holds over 27 per cent share of the e-scooter market in India, receives over 80,000 customer complaints every month, according to a report by Mint. Recently, CEO Bhavish Aggarwal’s public spat with Indian stand-up comedian Kunal Kamra on X over Ola Electric’s service quality triggered an outpouring of anger and frustration from customers on social media. In response to Kamra’s photo purportedly showing dozens of discarded e-scooters outside an Ola showroom, Aggarwal asked him to “sit quiet and let us focus on fixing the issues for the real customers. We’re expanding service network fast and backlogs will be cleared soon.” Meanwhile, HSBC analysts who dropped by multiple Ola service stations said that most of them had “appeared overwhelmed by the service requests and were struggling to provide adequate service quality,” according to a report by Reuters. Last month, a man torched seven e-scooters at an Ola Electric showroom in Karnataka after his complaints about an e- scooter he bought last month were allegedly ignored. Source: Indian Express

04 Oct 2024 New Delhi: The complaints registered at the National Consumer Helpline (NCH) have seen a significant increase over the past two years, said Nidhi Khare, Secretary, Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution at a recent event. Attributing the increase in complaints to growing consumer confidence, Khare remarked, “The complaints that we are now getting registered at NCH have doubled in the past two years. And that shows the trust and confidence consumers today have at the National Consumer Helpline.” In addition to the rise in complaints, She highlighted that class action suits by the Central Consumer Protection Authority (CCPA) have been instrumental in addressing consumer issues. “Through the Central Consumer Protection Authority, the class action matters have resulted in a big way to take care of consumer needs,” she added. Looking ahead, Khare assured that in the coming months, CCPA will be taking service to consumer rights ‘velY seriously.’ Stressing the government’s sharp focus on the growing e-commerce sector, the Consumer Affairs Secretary also said that the government is working towards ensuring that consumers shopping online are better served in terms of delivery times and efficient refunds. Source: Economic Times

01 Oct 2024 You will no longer lose your entire life insurance premium if you surrender your policy in the first year. Under a new rule by the Insurance Regulator and Development Authority of India (IRDAI) effective today, the surrender value will be available to life insurance policyholders after the first year of premium payment. Previously, policyholders could only surrender their policy after paying at least two full years of premiums, with no surrender value offered in the first year under the old guidelines. However, the increase in surrender value may result in higher costs for life insurers, which is expected to lower returns on both participating (par) and non-participating (non-par) policies. Non-par policies are likely to feel the immediate impact, while par policies may see lower bonuses announced later. Additionally, there could be a shift in commission structures from upfront payments to a trail model to offset the cost increases. In a participating policy, the policyholder shares in the profits of the insurance company in the form of bonuses or dividends. These bonuses are usually declared annually and are based on the insurer’s performance. On the other hand, non-participating policies do not offer such bonuses. Instead, they provide guaranteed benefits like a fixed sum assured, with no link to the company’s profits. Surrendering a policy refers to ending it before its full term and withdrawing from coverage. When this occurs, the policyholder receives a payout called the surrender value or early exit payouts, which is the higher of two amounts: the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). According to the new guidelines, insurers must ensure that the SSV equals at least the present value of the paid-up sum assured, future benefits, and any accrued or vested bonuses, while also accounting for any survival benefits already paid. The interest rate used for these calculations cannot exceed the current yield on 10-year government securities (G-Secs) plus an additional 50 basis points. For example, consider a policyholder with a IO-year policy, a sum assured of Rs 1 lakh, an annual premium of Rs 10,000, and a bonus of Rs 50,000. Under the new rules, the present value of the paid-up sum assured plus the future bonus would amount to Rs 7,823 or 78%. This is calculated as follows: {No. of Premiums Paid} / {Total Premiums to be Paid} * {Policy Returns Upon Maturity} For instance: 1 / 10 = Rs 10,000 Adding the paid-up bonus: Rs 10,000 + Rs 5,000 = Rs 15,000 Discounting this over the remaining term using the 10-year G-Sec rate plus 50 basis points: {Rs 15,000/(1.075)^9} = Rs 7,823 These new regulations will lead to an increase in the surrender value that policyholders receive but would also impact the return from these policies due to increase in costs. Source: Business Today

30 sept 2024 Agartala, Sept 30: Chief Minister Dr. Manik Saha on Monday stressed the need for raising more awareness on the Consumer Protection Act. With the changing times, the scope of business has expanded, and consumer protection has become inevitable, he said at an event in Agartala. He was addressing a state-level consumer awareness seminar and launch of Consumer Clubs inlOO schools and 18 colleges organized by the Food, Civil Supplies and Consumer Affairs department at Rabindra Satabarshiki Bhavan. The Chief Minister also handed over smart ration cards to a few consumers and launched free distribution of Maida, Sooji and Sugar through PDS for the upcoming Durga Puja. As decided by the Food department, the Chief Minister launched distribution of puja grants of Rs. 2000 to the workers. Minister for Food, Civil Supplies and Consumer Affairs Sushanta Chowdhury, Justice Arindam Lodh of the High Court of Tripura and president of Tripura State Consumer Disputes Redressal Commission, Mayor Dipak Majumder, Special Secretary to Food department Ravel Hamendra Kumar, Director Nirmal Adhikary and other officials were present. The Chief Minister advised the consumers to collect cash memo in case of any purchase so that they could easily avail legal benefit. He also emphasized the importance of such awareness programmes in educating the people regarding relevant matters including fraud in online purchase. Justice Lodh appreciated the initiative in view of raising awareness on the Consumer Protection Act in this digital era. Chowdhury in his address said, small in size, Tripura holds a significant position in the country in terms of PDS. He highlighted the initiative of digitizing the PDS and other plans to further strengthen this sector. Source: Tripura Times

08 Oct 2024 With October marking the beginning of Cybersecurity Awareness, it’s a crucial time to revisit best practices for staying safe online. Let’s look at a comprehensive set of cybersecurity strategies, aimed at helping individuals navigate the ever-evolving digital landscape with confidence. From leveraging biometric authentication to practicing good password hygiene and being cautious of phishing attempts, these practical recommendations ensure that consumers are well-equipped to protect themselves from common cyber threats. Below is a detailed guide on how to stay secure in today’s online world: Cybersecurity Pro Tips: Face Scans and Fingerprints are Safer Than Passcodes: use features like Face ID or fingerprint scans for your devices as much as possible. These are safer than passcodes and devices have good built-in protections for this sensitive information. Use Multi-Factor Authentication: Use multi-factor authentication (MFA) whenever possible. This gives an important extra layer of security that makes it harder for cybercriminals to access your accounts. If you can’t use something more secure like secure authenticator applications or physical hardware security keys, use your phone number it’s safer than using nothing. If you use MFA for only one thing, use it for your email: that’s what attackers want the most. Think Before You Share Publicly: Think twice before sharing any information publicly — cybercriminals can use it to access your accounts or to convince someone that they’re you. Think about those cute surveys on Facebook with questions about your first car, city you were born in: these are the same kinds of info cybercriminals can use to pretend they’re you and log into and take over your accounts. You Don’t Always Need (to keep) the App: Don’t feel pressured to download an app every time: you can often use the service’s website just as well. Apps collect much more data than websites, including your location, your contact list and other info you might not want to share. If you do download an app, think about deleting it when you’re done using it: you can always reinstall it next time you need it. Beware of Apps You Get Outside of the Big-Name App Stores: Apps from app stores and websites  that aren’t the official big names ones like Google Play, Apple’s App Store, Samsung’s Galaxy Store can be very risky. The official stores have security and privacy standards that can identify malicious activity. Always stick to official sources for downloading apps or, if they’re not on the official app stores, download the app from the developer’s official website or use the app’s web version. Be On Your Guard for Unexpected Q EmajJs and Text Messages: Phishing continues to be one of the most effective tactics cybercriminals use to compromise consumers. If you get an unexpected q .emaiJ or text message, ignore it or at least don’t interact with it (don’t open attachments, don’t click on links). If you think it might be legitimate, reach out directly to who you think sent it and check with them. Question Urgency in Emails and Calls: Cybercriminals use urgency to get you to let your guard down and make bad decisions. If someone contacts you saying they’re from a trusted organization like the IRS, police or your bank and need you to take action quickly or something bad will happen, stop and question it. Go to the trusted source like the number on the back of your credit card to independently validate the request. Practice Good Password Security: Every account should have its own unique complex password. A strong password is at least 12 characters long with a mix of numbers, upper- and lower-case letters, and punctuation characters. Passwords should not be based on any personal information, and the best ones use a phrase rather than single words. If these passwords are too tough to juggle, try a password manager to stay organized. Keep Everything Updated and Run Security Tools. Make sure all your apps and devices are always fully updated. Be sure to have some sort of security software on all of your phones and computers (even if you have a Mac). Get Rid of End-of-Life Devices and Software: Everything from operating systems to services to Wi-Fi routers “go stale” and must be replaced eventually. For example, it might surprise you, but your internet router is typically only supported with patches and updates for a few years after you get it. Attackers love out-of-date devices. When something is “out of support” it’s stale: get rid of it and replace it with something fresh. Back up Your Data: While ransomware groups are mostly after businesses that can pay higher ransoms, they still go after people at home. It’s still important to have your data backed up so that you don’t have to consider paying a ransom. Put Your Mind at Ease Regarding These Cybersecurity Concerns Part of staying secure requires being able to filter out the noise and prioritize the security actions that matter. Here are things not to worry about. Focus your energy on real risks, not exaggerated threats. Public Wi-Fi is Safer Than You Think: Contrary to outdated advice, public Wi-Fi is generally safe due to encryption used by most websites and apps. Use it freely at airports or coffee shops, but avoid sensitive activities. Beware of Fearmongering Around New Tech Features: Not every new technology is as risky as it’s made out to be. For example, Apple’s NameDrop feature is generally safe and requires specific conditions to function. However, if you’re concerned, you can easily turn it off in settings. Stop Stressing Over Public Chargers: The risk of “juice jacking” (data theft from public chargers) is extremely low. Don’t worry about using public phone chargers — just focus on real, more prevalent threats. Source: Cityair News