12. Consumer Disputes Redressal Commissions
Till recently, the Consumer Disputes Redressal Commissions used to function under the ambit of the Consumer Protection Act, 1986. This act has been replaced by the Consumer Protection Act, 2019, which envisages setting up of Consumer Disputes Redressal Commissions at the District, State and National levels for adjudicating consumer complaints. Appeals from the District and State Commissions will be heard at the next level and from the National Commission by the Supreme Court.
The Commissions will protect the “consumer rights” as defined by the 2019 Act as the right:
♤ to be protected against the marketing of goods, products or services which are hazardous to life and property.
♤ to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services;
♤ to be assured of access to a variety of goods, products or services at competitive prices.
♤ It also includes the right to be heard and to be assured that the consumer’s interests will receive due consideration at appropriate forum; and
♤ the right to consumer awareness.
1986 Act
2019 Act
The powers and jurisdiction of these Commissions have been modified due to the new law, as shown below:
Ambit of law | All goods and services for consideration, while free and personal services are excluded. | All goods and services, including telecom and housing construction, and all modes of transactions (online, teleshopping, etc.) for consideration. Free and personal services are excluded. |
Unfair trade practices | Includes six types of such practices, like false representation, misleading advertisement. | The Act adds three types of practices to the list, namely: ♤ failure to issue a bill or receipt; ♤ refusal to accept a good returned within 30 days; and ♤ disclosure of personal information given in confidence, unless required by law or in public interest. Contests/ lotteries may be notified as not falling under the ambit of unfair trade practices. |
Product liability | No provision. Consumer could approach civil court but not consumer court. | Claim for product liability can be made against manufacturer, service provider, and seller. |
Unfair contracts | No provision. | The Act recognizes and addresses the menace of unilateral and unfair contracts. |
Regulator | No separate regulator. | Establishes the Central Consumer Protection Authority. |
Pecuniary jurisdiction of Commissions | District: Up to Rs 20 lakh; State: Between Rs 20 lakh and up to Rs one crore; National: Above Rs one crore | District: Up to Rs one crore; State: Between Rs one crore and up to Rs 10 crore; National: above Rs 10 crore. |
Consumer court | Complaints could be filed in a consumer court where sellers (defendant) office is located. | Complaints can be filed in a consumer court where consumer resides or work. |
E-commerce | No provision. | Defines direct selling, e-commerce and electronic service provider. The central government may prescribe rules for preventing unfair trade practices in e-commerce and direct selling. |
Mediation Cells | No legal Provision. | Court can refer settlement through mediation. |
The National Commission is empowered to issue instructions regarding:
♤ Adoption of uniform procedure in the hearing of the matters,
♤ Prior service of copies of documents produced by one party to the opposite parties,
♤ Speedy grant of copies of documents, and
♤ Generally over-seeing the functioning of the State Commissions and the District Forums to ensure that the objects and purposes of the Act are best served, without interfering with their quasi-judicial freedom.
♤ In order to help achieve the objects of the Consumer Protection Act, the National Commission has also been conferred with the power of administrative control over all the State Commissions by calling for periodical returns regarding the institution, disposal and pendency of cases.
The remedy under the Consumer Protection Act is an alternative in addition to that already available to the aggrieved persons/consumers by way of civil suit. In the complaint/appeal/ petition submitted under the Act, a consumer is not required to pay any court fee, but only a nominal fee.