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Consumer

Affairs

CONSUMER
GRIEVANCE
REDRESSAL
MECHANISMS
Consumer protection is perhaps one of
the most expansive and broad area of
law, as almost every facet of our
society involves interaction by people in
their capacity as consumers– food,
housing, travel, banking, medicine,
education, insurance, postal services,
electricity, e-commerce etc.
Who is a Consumer?
A ‘Consumer’ is a person who purchases a
product or avails a service for consideration,
either for personal use or to earn livelihood
through self-employment. The consideration
may be: Who is not a Consumer?
✓ Paid
A person is not a ‘Consumer’ if s/he:
✓ Promised
✓ Partly paid and partly promised ✓ purchases any goods or avails any service
free-of-charge

✓ purchases a good or hires a service for


commercial purposes

✓ avails any service under a contract of service

Source: Consumer Protection Act 2019 – Section 2 (7)


Right to seek redressal against unfair trade practices
or unscrupulous exploitation of consumers. It also
Consumer Rights includes the right to fair settlement of the genuine
grievances of the consumer.
▪ Right to be Protected
▪ Right to be Informed Consumers must make complaint for their genuine
▪ Right to be Assured grievances. Many times, their complaint may be of
▪ Right to be Heard
small value but its impact on the society may be very
▪ Right to seek Redressal
large. They can also take the help of consumer
▪ Right to Consumer Awareness
organizations in seeking redressal of their grievances

Source: Consumer Protection Act 2019 – Section 2 (9)


The Consumer
Protection Act 2019

‘complaint’ means any allegation in writing or e-filing,

made by a complainant for obtaining any relief provided by


or under this Act, that—

1. an unfair contract or unfair trade practice or a


restrictive trade practice has been adopted by any
trader or service provider;

2. the goods bought by him/her agreed to be bought by


him/her suffer from one or more defects;

3. the services hired or availed of or agreed to be hired


or availed of by him/her suffer from any deficiency;
Source: Consumer Protection Act 2019 – Section 2 (6)
The Consumer
Protection Act 2019

‘complainant’ means

a consumer; or any voluntary consumer association


registered under any law for the time being in force;
or the Central Government or any State Government;
or the Central Authority; or one or more consumers,
where there are numerous consumers having the
same interest; or in case of death of a consumer, his
legal heir or legal representative; or in case of a
consumer being a minor, his parent or legal
guardian.
Source: Consumer Protection Act 2019 – Section 2 (5)
"unfair trade practice" means a trade practice which, for the purpose of promoting
the sale, use or supply of any goods or for the provision of any service, adopts any
What is unfair method or unfair or deceptive practice including any of the following
unfair trade practices, namely:

practices? ✓ making any statement, whether orally or in writing or by visible representation


including using electronic record, which falsely represents that the
goods/services are of a particular standard, quality, quantity, grade,
composition, style or model;

✓ falsely represents any re-built, second-hand, renovated, reconditioned or old


goods as new goods;

✓ represents that the seller or the supplier has a sponsorship or approval or


affiliation which such seller or supplier does not have;

✓ gives to the public any warranty or guarantee of the performance, efficacy or


length of life of a product or of any goods that is not based on an adequate or
proper test. Source: Consumer Protection Act 2019 – Section 2 (47)
✓ materially misleads the public concerning the price at which a product or like products or services,
have been or are, ordinarily sold or provided;

What is
✓ the offering of gifts, prizes or other items with the intention of not providing them as offered or
creating an impression that something is being given or offered free of charge when it is fully or

unfair trade partly covered by the amount charged, in the transaction as a whole;

✓ withholding from the participants of any scheme offering gifts, prizes or other items free of charge
practices? on its closure, the information about final results of the scheme;

✓ not issuing bill or cash memo or receipt for the goods sold or services rendered in such manner
as may be prescribed;
What is unfair
trade practices?

5. the goods, which are hazardous to life and safety when


used, are being offered for sale to the public —

a) in contravention of standards relating to the safety


of such goods as required to be complied with, by
or under any law for the time being in force;

b) where the trader knows that the goods so offered


are unsafe to the public;
What is unfair
trade practices?

6. the services which are hazardous or likely


to be hazardous to the life and safety of the
public when used, are being offered by a
person who provides any service and who
knows it to be injurious to life and safety;

7. a claim for product liability action lies


against the product manufacturer, product
seller or product service provider, as the
case may be;
Consumer Disputes
Redressal Commissions
Rules, 2020
➢ 'appellant' means a person who appeals against
the order of the Commission.

➢ ‘Commission’ means the District Commission,


the State Commission, or the National
Commission, as the case may be.

➢ 'authorized agent' means a person duly


authorized by a party to present any complaint,
appeal or reply on behalf of such party before
the Commission.

➢ 'memorandum' means appeal filed by the appellant.


Source: Consumer Disputes Redressal Commissions Rules 2020 – Section 2
Structure Supreme Court

for
Redressal
Mechanism National Commission > TWO CRORES

State Commission FIFTY LAKHS - TWO CRORES

The Consumer Protection


Act envisages a three-tier
quasi-judicial machinery
at the National, State and District Commission < FIFTY LAKHS
(value of goods/service paid in rupees as consideration)
District levels
Source: Consumer Protection Amendment Rules 2022
Consumer Protection Councils

✓ The central minister in-charge of Department


NCDRC National Consumer Disputes Redressal Committee
of Consumer Affairs is the Chairperson at the
Central Level

✓ The state minister in-charge of Department of


SCDRC State Consumer Disputes Redressal Committee
Consumer Affairs is the Chairperson at the
State Level

✓ The district collector is the Chairperson at the


DCDRC District Consumer Disputes Redressal Committee District Level
Consumer Dispute Redressal Commissions

DCDRC - Each District has a District Commission


• District Commission consists of three members.
• Out of the three, one is President, who is or has been or is qualified to be a District Judge.
• One of the members shall be a woman.

SCDRC - Each state has one State Commission


• It consists of a President, who is or has been a Judge of a High Court and four other members,
one of whom shall be a woman.
• Appeals against the Orders of the District Forums can also be filed in the State Commission.

NCDRC - The National Commission is in Delhi


• It consists of a President (<70 years) who is or has been a Judge of the Supreme Court and not less than
four other members (<67 years), one of whom shall be a woman.
Source: Consumer Protection Act 2019 – Section 2 (IV)
Fee for making complaints

Consumer
Disputes
Redressal
Commissions
Amendment
Rules, 2022

Source: Consumer Protection Amendment Rules 2022


LIMITATION
PERIOD
Source: Consumer Protection Act 2019 – Section 2 (69)
30
✓ Any person, aggrieved by an order made by the District Commission can go to State Commission.
Similarly, from State Commission to the National Commission.

✓ Every appeal shall be preferred within a period of thirty days from the date of order of a District

DAYS Commission or the State Commission. Any person aggrieved by an order made by the National
Commission may appeal against such order to the Supreme Court within a period of thirty days from
the date of the order.
Source: Consumer Protection Act 2019 – Section 2 (24, 41, 51, 67)
Within 21 days of receiving the complaint, the District Commission should inform the

21DAYS
opposite party to give his/her version of the case. The opposite party should respond
within a period of 30 days or such extended period not exceeding 15 days. If the
parties agree to settlement by mediation, the District Commission shall, within 5 days
of receipt of such consent refer to mediation.
Source: Consumer Disputes Redressal Commissions Rules 2020 – Section 12

if the opposite party on receipt of a complaint denies or disputes the allegations then:

✓ The evidences are produced. If the defect in the goods cannot be determined without proper analysis or test of the goods,
a sample of the goods is taken from the complainant, it is sealed and sent to a laboratory. The laboratory should send the
report within a period of 45 days.

✓ In cases where the commissions suspect that the evidence is destroyed, mutilated, altered, falsified or secreted, it may,
by written order, authorize any officer to exercise the power of entry and search of any premises, and seizure of any
book, paper, document or commodity as may be required for such proceeding. The authorized officer should communicate
to the commission as soon as made or within a period not exceeding 72 hours of making such a seizure.
Source: Consumer Protection Act 2019 – Section 2 (38)
Structure of the Complaint

The complaint should contain the following particulars:

• Name and complete address of the complainant.


• Name and complete address of the opposite party/parties.
• Date of purchase of goods or services availed.
• Amount paid for the above purpose.
• Particulars of goods purchased with numbers or details of services availed.
• Details of complaint, whether it is against Unfair Trade Practice / supply of defective goods / deficiency
in service provided / collection of excess price, should explicitly be mentioned in the complaint petition.
• Bills / receipts and copies of connected correspondence, if any.
• Relief sought for under this Act.
• Complaint should be signed by the complainant or his authorized agent.

Source: Consumer Disputes Redressal Commissions Rules 2020 – Section 12


CONFONET
E-DAAKHIL CONFONET aims to digitalize the functioning of the Consumer Commissions at all
the three tiers (National, State and District) throughout the country to enable
access of information and computerize the workflow of consumer commission.

Developed under Consumer


https://www.confonet.nic.in/
Protection Act 2019, the e-Daakhil
portal has a provision for online
filing of consumer complaints in
ONLINE CASE MONITORING SYSTEM
the Consumer Commissions and
online payment of fees for filing a The system provides a single-window solution for automation of all the activities
undertaken at the Consumer Commissions. The registration of complaints,
complaint.
recording of court proceedings, issue of notices, generation of cause lists,
recording of judgments, record keeping, and generation of statistical reports and
all other court related activities are carried out through this standardized
https://edaakhil.nic.in/ software.
Source: https://edaakhil.nic.in/edaakhil/ ‘Rejoinder’ means the pleading of the defendant.
https://edaakhil.nic.in/userguide/videos/Registration_english.mp4
https://edaakhil.nic.in/userguide/videos/CCfiling_english.mp4
CONFONET

‘Causelist’ means the list of


cases or “causes” which are
listed for hearing on a
particular day in the court.
Source: Consumer Protection Act 2019 – Section 2 (38)
Jurisdiction of A complaint can be filed where:
Commissions
✓ the complainant resides or personally works for

▪ Pecuniary or Monetary gain, or


Jurisdiction ✓ the cause of action, wholly or in part, arises, or
Based on the value of goods or ✓ the opposite party ordinarily resides or carries
services paid as consideration.
on business or has a branch office or personally

▪ Territorial Jurisdiction works for gain, or


✓ any of the opposite parties ordinarily resides or
carries on business or has a branch office or
personally works for gain but only with the
permission of Commission.

Source: Consumer Protection Act 2019 – Section 34, 47, 54


Mediation At the first hearing of the complaint after its admission, or any
later stage, if it appears to the Commission that there exist
elements of a settlement which may be acceptable to the parties,
it may direct the parties to give in writing, within five days,
consent to have their dispute settled by mediation.

For mediation, a panel of mediators is to be maintained by the


consumer mediation cell attached to the commission. The
mediator shall prepare a settlement report and forward the
signed agreement and such report to the concerned Commission.

Where the consumer dispute cannot be settled by mediation, the


District Commission, the State Commission, or the National
Commission, as the case may be, shall continue to hear all the
issues involved in such consumer dispute.
Source: Consumer Protection Act 2019 – Section 34, 47, 54
✓ Whoever fails to comply with any direction of the commission shall
be punished with imprisonment for a term which may extend to six
months or with a fine which may extend to twenty lakh rupees, or
with both.

✓ Any manufacturer or service provider who causes a false or


misleading advertisement to be made which is prejudicial to the
interest of consumers shall be punished with imprisonment for a
term which may extend to two years and with a fine which may
extend to ten lakh rupees; and for every subsequent offence, be
punished with imprisonment for a term which may extend to five
years and with fine which may extend to fifty lakh rupees.

Source: Consumer Protection Act 2019 – Section 88, 89


Whoever, by himself or by any other person on his behalf, manufactures
for sale or stores or sells or distributes or imports any product containing
an adulterant shall be punished if such act:

a) No injury - with imprisonment for a term which may extend to six months
and with a fine which may extend to one lakh rupees;

b) Injury but not amounting to grievous hurt – with imprisonment for a term
which may extend to one year and with a fine which may extend to three
lakh rupees;

c) Injury with grievous hurt - with imprisonment for a term which may
extend to seven years and with a fine which may extend to five lakh
"adulterant" means any material including
extraneous matter which is employed or
rupees; and
used for making a product unsafe;
d) Death - with imprisonment for a term which shall not be less than seven
years, but which may extend to imprisonment for life and with a fine
which shall not be less than ten lakh rupees. The offence is non-bailable.

Source: Consumer Protection Act 2019 – Section 90


Spurious Goods Whoever, by himself or by any other person on his behalf,
manufactures for sale or stores or sells or distributes or imports
any spurious goods shall be punished if such act:

a) Injury but not amounting to grievous hurt – with imprisonment for a


term which may extend to one year and with a fine which may
extend to three lakh rupees;

b) Injury with grievous hurt - with imprisonment for a term which may
extend to seven years and with a fine which may extend to five lakh

✓ "spurious goods" means such goods which


rupees; and
are falsely claimed to be genuine; c) Death - with imprisonment for a term which shall not be less than
✓ manufacturing of spurious goods or offering seven years, but which may extend to imprisonment for life and
such goods for sale or adopting deceptive
with a fine which shall not be less than ten lakh rupees. The
practices in the provision of services;
offence is non-bailable.

Source: Consumer Protection Act 2019 – Section 91

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