MAM
Lok Sabha passes Consumer Protection Bill 2019
MUMBAI: The Lok Sabha has passed the Consumer Protection Bill 2019 after due consideration and discussion. The Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan said that the bill aims at protecting the interests of consumers by establishing authorities for timely and effective administration and settlement of consumers’ dispute.
Moving the bill, Minister of State for Consumer Affairs, Food and Public Distribution, Raosaheb Patil Danve said it aims to simplify a number of rules. Danve said consumers do not get quick redressal of their complaints and with the passage of the bill, consumers will be able to get speedy justice. He said the government aims to simplify the entire process of redressal of consumer grievances.
Under the bill, there is provision for central government to set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers and will be empowered to investigate, recall, refund and impose penalties. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements. There is also a provision for class action law suit for ensuring that rights of consumers are not infringed upon. The authority will have power to impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh rupees and imprisonment for up to two years for a false or misleading advertisement.
Commenting on the development, Advertising Standards Council of India (ASCI) chairman D Shivakumar said, "This is a great development in favour of consumers and ASCI welcomes the passing of the new Consumer Protection Bill. Protection of consumers’ interest is also ASCI’s core mission. As an expert body dealing with complaints pertaining to misleading advertisements, ASCI has been working closely with the Department of Consumer Affairs. Complaints being received on the GAMA portal are being examined by ASCI since the launch of the GAMA portal. We expect this co-regulation model to be strengthened further as per recommendations of the parliamentary standing committee."
Salient features of the bill
1. Central Consumer Protection Authority (CCPA): Executive agency to provide relief to a class of consumers. The CCPA will be empowered to-
Conduct investigations into violations of consumer rights and institute complaints /prosecution
Order recall of unsafe goods and services
Order discontinuance of unfair trade practices and misleading advertisements
Impose penalties on manufactures /endorsers /publishers of misleading advertisements
2. Simplified dispute resolution process
i) Pecuniary jurisdiction enhanced to-
District Commission –Up to Rs 1 crore
State Commission- Between Rs 1 crore and Rs 10 crore
National Commission –Above Rs 10 crore
ii) Deemed admissibility after 21 days of filing
iii) Empowerment of consumer commission to enforce their orders
iv) Appeals only on question of law after second stage
v) Ease of approaching consumer commission
Filing from place of residence
E-filing
Video-conferencing for hearing
3. Mediation
An Alternate Dispute Resolution (ADR) mechanism
Reference to mediation by consumer forum wherever scope for early settlement exists and parties agree for it.
Mediation cells to be attached to consumer forum
No appeal against settlement through mediation
4. Product liability
A manufacturer or product service provider or product seller to be responsible to compensate for injury or damage caused by defective product or deficiency in services
The basis for product liability action will be:
Manufacturing defect
Design defect
Deviation from manufacturing specifications
Not conforming to express warranty
Failing to contain adequate instruction for correct use
Services provided arefaulty, imperfect or deficient
New bill – benefit to consumers
Presently consumers only have a single point of access to justice, which is time consuming. Additional swift executive remedies are proposed in the bill through Central Consumer Protection Authority (CCPA)
Deterrent punishment to check misleading advertisements and adulteration of products
Product liability provision to deter manufacturers and service providers from delivering defective products or deficient services
Ease of approaching consumer commission and simplification of adjudication process
Scope for early disposal of cases through mediation
Provision for rules for new age consumer issues: e-commerce & direct selling
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
