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Writer's pictureZODIAC LEGAL

Consumers Protection in India


The Consumer Protection Act, 2019 provides a simple, speedy and inexpensive manner of redressal for consumers’ grievances. The Act provides a three-tier quasi-judicial mechanism at the national, state and district levels by establishing Consumer Disputes Redressal Commissions (CDRCs) at the national, state and district levels.. As per the Act a person is called a consumer who avails the services and buys any good for self-use. Worth to mention that if a person buys any good and avail any service for resale or commercial purpose, is not considered a consumer. This definition covers all types of transactions i.e. online and offline.

As per Section 17 of the a complaint relating to violation of consumer rights or unfair trade practices or false or misleading advertisements which are prejudicial to the interests of consumers as a class, may be forwarded either in writing or in electronic mode, to any one of the authorities, namely, the District Collector or the Commissioner of regional office or the Central Authority.






Limitation Period for filing Complaint

The District Commission, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen however the complaint may be entertained after the specified period if the complainant satisfies the District Commission, the State Commission or the National Commission, as the case may be, that he/ she had sufficient cause for not filing the complaint within such period provided that no such complaint shall be entertained unless the District Commission or the State Commission or the National Commission, as the case may be, records its reasons for condoning such delay.


District Consumer Disputes Redressal Commission

The State Government shall establish a District Consumer Disputes Redressal Commission, to be known as the District Commission, in each district of the State provided that the State Government may, if it deems fit, establish more than one District Commission in a district. The District Commission shall ordinarily function in the district headquarters and may perform its functions at such other place in the district, as the State Government may, in consultation with the State Commission, notify in the Official Gazette from time to time


Complaint to District Commission

A complaint, in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided, may be filed with a District Commission by—

(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service is provided or agreed to be provided or who alleges unfair trade practice in respect of such goods or service;

(b) any recognized consumer association who alleges unfair trade practice in respect of such goods or service


(c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Commission, on behalf of, or for the benefit of, all consumers so interested; or


(d) the Central Government, the Central Authority or the State Government, as the case may be provided that the complaint under this sub-section may be filed electronically in such manner as may be prescribed.


State Consumer Disputes Redressal Commission

The State Consumer Disputes Redressal Commission, to be known as the State Commission, in the State which shall ordinarily function at the State capital and perform its functions at such other places as the State Government may in consultation with the State Commission notify in the Official Gazette provided that the State Government may, by notification, establish regional benches of the State Commission, at such places, as it deems fit.


Complaint / Jurisdiction of State Consumer Disputes Redressal Commission,

The State Commission shall have jurisdiction to entertain such complaints where the value of the goods or services exceeds rupees one crore, but does not exceed rupees ten crore and appeals against the orders of any District Commission within the State.


National Consumer Disputes Redressal Commission

The National Consumer Disputes Redressal Commission, to be known as the National Commission which shall ordinarily function at the National Capital Region and perform its functions at such other places as the Central Government may in consultation with the National Commission notify in the Official Gazette provided that the Central Government may, by notification, establish regional Benches of the National Commission, at such places, as it deems fit.


Jurisdiction of National Consumer Disputes Redressal Commission


The National Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds rupees ten crore, appeals against the orders of any State Commissions, appeals against the orders of the Central Authority, complaints against unfair contracts where the value of goods or services paid as consideration exceeds ten crore rupees.

Mediation

The State Government shall establish, by notification, a consumer mediation cell to be attached to each of the District Commissions and the State Commissions of that State while the Central Government shall establish, by notification, a consumer mediation cell to be attached to the National Commission and each of the regional Benches.


The mediation shall be held in the consumer mediation cell attached to the District Commission, the State Commission or the National Commission, as the case may be. For the purpose of mediation, the National Commission or the State Commission or the District Commission, as the case may be, shall prepare a panel of the mediators .The mediators so nominated shall conduct mediation within such time and in such manner as may be specified by regulations. Pursuant to mediation, if an agreement is reached between the parties with respect to all of the issues involved in the consumer dispute or with respect to only some of the issues, the terms of such agreement shall be reduced to writing and shall be signed by the parties to such dispute or their authorised representatives. The mediator shall prepare a Settlement Report of the settlement and forward the signed agreement along with such report to the concerned Commission. Where no agreement is reached between the parties within the specified time or the mediator is of the opinion that settlement is not possible, he shall prepare his report accordingly and submit the same to the concerned Commission. The District Commission or the State Commission or the National Commission, as the case may be, shall, within seven days of the receipt of the Settlement Report, pass suitable order recording such settlement of consumer dispute and dispose of the matter accordingly.


Procedure for filing Complaints

In Consumer Protection disputes, one does not need a lawyer at any

stage of the proceedings . However before filing a complaint, a Legal Notice is to be served by any authorized lawyer on behalf of the client, or by the client himself to the opposite party, explicitly giving them the last opportunity to settle the matter before it reaches the Commission . Further, it communicates the intention of the complainant in clear terms to the opposite party and acts as a legal warning stating that if the matter is not resolved and the grievances of the consumer are not addressed within a specified period of time, the consumer would have no option other than moving proceedings before the appropriate Commission.


Where a Complaint is filed in the District Commission, it shall be filed in three sets with additional sets equal to the number of opposite parties.


Where the Complaint or Appeal or Revision petition is filed before the State Commission, it shall be filed in three sets or such number of sets as may be decided by the President of the State Commission from time to time, with approval of the President of the National Commission, with additional sets equal to the number of opposite parties or respondents.


Where a Complaint or Appeal or Revision Petition is filed in the National Commission, it shall be filed in two sets and the sets for the Opposite parties or respondents shall be filed within a week of admission of such case or issuance of notice to the opposite parties.


Every complaint shall clearly contain particulars of dispute and the relief claimed and shall also be accompanied by copies of such documents as are necessary to prove the claim made in the complaint. The complaint should contain the following information:-

a. The name, description and address of the complainant and the

opposite parties.

b. The facts relating to complaint and when and where it arose.

c. Documents in support of the complaint.

d. The relief which the complainant is seeking.

e. The complaint should be signed by the complainant or his authorized

representative and the complaint affidavit must be notarized.




Reliefs / Prayers

The following reliefs may be granted to the Consumers.


a. to remove the defects in the goods pointed out;

b. to replace the goods;

c. to return to the complainant the price of the goods;

d. to pay such amount of compensation for the loss or injury

suffered by the consumer;

e. to remove the defects or deficiency in the services;

f. to discontinue the unfair trade practice or not to repeat it;

g. to withdraw the hazardous goods from being offered for sale;

h. to provide the cost of expenditure incurred by the complainant.

i. other relief as the Commission may think fit.


Appeals

Appeal before State Commission


Any person aggrieved by an order made by the District Commission may prefer an appeal against such order to the State Commission on the grounds of facts or law within a period of forty-five days from the date of the order in the prescribed manner.


Appeal before National Commission


Any person aggrieved by an order made by the State Commission may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in the prescribed manner provided that the National Commission shall not entertain the appeal after the expiry of the said period of thirty days unless it is satisfied that there was sufficient cause for not filing it within that period provided further that no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited fifty per cent. of that amount in the prescribed manner .


Appeal before Hon’ble Supreme Court of India


Any person, aggrieved by an order made by the National Commission may prefer an appeal against such order to Hon’ble Supreme Court within a period of thirty days from the date of the order provided that Hon’ble Supreme Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period provided further that no appeal by a person who is required to pay any amount in terms of an order of the National Commission shall be entertained by Hon’ble Supreme Court unless that person has deposited fifty per cent. of that amount in the prescribed manner .


Central Consumer Protection Authority


 As provided in section 10 of The Consumer Protection Act 2019 , the Central Consumer Protection Authority (CCPA) has been established w.e.f. 24th July, 2020. to exercise the powers and discharge the functions under the Act..

The objective of the Central Consumer Protection Authority (CCPA) is to promote, protect and enforce the rights of consumers as a class. It will be empowered to conduct investigations into violation of consumer rights and institute complaints / prosecution, order recall of unsafe goods and services, order discontinuation of unfair trade practices and misleading advertisements, impose penalties on manufacturers/endorsers/publishers of misleading advertisements and other things in the interest of consumers.



DISCLAIMER: The above is just brief introduction of provisions of Consumer Protection Law . For details knowledge, procedures, and information , kindly refer complete Act, Rules and Regulations made under The consumer Protection Act 2019.





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