Ways and Means of Consumer Protection
Ways And Means Of Consumer Protection
Consumer protection in India is a multi-pronged approach involving various parties working to safeguard consumer interests. Besides the legal framework provided by the Consumer Protection Act, 2019, there are other avenues and initiatives aimed at empowering consumers and addressing their grievances.
The main ways and means of consumer protection in India are:
1. Self-regulation by Businesses: Businesses establishing their own consumer grievance cells or adhering to codes of conduct issued by industry associations.
2. Consumer Awareness: Consumers educating themselves about their rights and responsibilities.
3. Consumer Organisations: Non-governmental organisations (NGOs) and consumer associations working for consumer rights.
4. Government: Enacting laws, establishing redressal mechanisms, and promoting consumer awareness (e.g., 'Jaago Grahak Jaago' campaign).
5. Redressal Agencies under the Consumer Protection Act: The formal legal system for handling consumer complaints.
This section primarily focuses on the redressal agencies provided by the Act and the role played by consumer organisations and NGOs.
Redressal Agencies Under The Consumer Protection Act
The Consumer Protection Act, 2019, provides for a three-tier quasi-judicial machinery at the District, State, and National levels for the redressal of consumer grievances. These forums are designed to provide simple, speedy, and inexpensive justice to consumers.
The hierarchy of these forums is as follows:
1. District Consumer Disputes Redressal Forum (District Forum):
- Established by the State Government in each district.
- Jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed ₹1 Crore.
- Consists of a President and at least two other members.
- Complaints are filed here first if the claim value is within the limit.
2. State Consumer Disputes Redressal Commission (State Commission):
- Established by the State Government in the State.
- Jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds ₹1 Crore but does not exceed ₹10 Crore.
- Also hears appeals against the orders of any District Forum within the State.
- Consists of a President and not less than four members.
3. National Consumer Disputes Redressal Commission (National Commission):
- Established by the Central Government.
- Jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds ₹10 Crore.
- Also hears appeals against the orders of any State Commission.
- Consists of a President and not less than four members.
- Appeals against the order of the National Commission can be filed in the Supreme Court of India.
Procedure for Filing a Complaint:
- A complaint can be filed by:
- A consumer.
- Any recognised consumer association.
- One or more consumers having the same interest.
- The Central Government or any State Government.
- The Central Consumer Protection Authority (CCPA).
- Complaints can be filed in writing (can be online now) and should contain details of the complainant and the opposite party, facts of the case, evidence, and the relief sought.
- The complaint must be filed within two years from the date on which the cause of action arises.
- A prescribed fee is payable depending on the value of the claim.
- The consumer forum can pass orders like directing the opposite party to remove the defect in goods/services, replace the goods, return the price paid, pay compensation for loss/injury, discontinue unfair trade practice, not offer hazardous goods for sale, issue corrective advertisement, pay punitive damages, etc.
Example 1. Mrs. Kapoor purchased furniture worth ₹75 Lakhs from a dealer in her city. The furniture turned out to be defective. She wants to file a complaint under the Consumer Protection Act. Which level of consumer redressal agency should she approach first?
Answer:
Since the value of the goods is ₹75 Lakhs, which does not exceed ₹1 Crore, Mrs. Kapoor should approach the District Consumer Disputes Redressal Forum.
Example 2. A group of apartment owners jointly file a complaint against a builder for deficiency in services, claiming compensation of ₹5 Crore in total. Which level of consumer redressal agency should they approach?
Answer:
Since the total claim value is ₹5 Crore, which exceeds ₹1 Crore but does not exceed ₹10 Crore, they should approach the State Consumer Disputes Redressal Commission.
Role Of Consumer Organisations And Ngos
Consumer organisations and Non-Governmental Organisations (NGOs) play a crucial role in protecting and promoting consumer interests, particularly in a country like India where consumer awareness levels can be low.
These organisations work independently of businesses and the government, advocating for consumer rights and providing assistance to consumers.
Some prominent consumer organisations/NGOs in India include the Consumer Guidance Society of India (CGSI), VOICE (Voluntary Organisation in Interest of Consumer Education), and Consumer Unity & Trust Society (CUTS).
Role and Functions of Consumer Organisations/NGOs:
1. Educating the General Public about Consumer Rights: Organising training programmes, workshops, and publishing literature to create awareness among consumers about their rights and available redressal mechanisms (e.g., running campaigns similar to 'Jaago Grahak Jaago').
2. Publishing Periodicals and other Publications: Releasing magazines, newsletters, and brochures to disseminate information about consumer issues, product quality, legal remedies, etc.
3. Carrying out Comparative Testing of Products: Testing various brands of consumer products and publishing the results to help consumers make informed choices.
4. Filing Complaints on Behalf of Consumers: Assisting individual consumers in filing complaints with the appropriate consumer forums or filing complaints collectively on behalf of a group of consumers with similar grievances.
5. Filing Complaints for General Public Interest: Filing complaints against unfair trade practices, restrictive trade practices, or violations of consumer rights that affect the public at large, even if no specific individual complaint has been received.
6. Encouraging Consumers to Act Firmly: Motivating consumers to speak up against unethical practices and guiding them on how to seek redressal.
7. Lobbying with the Government: Advocating for stronger consumer protection laws and policies with the government and regulatory authorities.
8. Assisting in Legal Proceedings: Providing legal aid and guidance to consumers in pursuing their cases in consumer forums.
These organisations serve as a bridge between consumers and the complex market and legal systems, significantly contributing to the consumer protection movement.
Example 3. A consumer association in Chennai takes samples of different brands of packed milk from local shops, gets them tested in a laboratory for quality and purity, and publishes the findings in its monthly newsletter. Which role of a consumer organisation does this illustrate?
Answer:
This illustrates the role of Carrying out Comparative Testing of Products and Publishing Periodicals and other Publications.
Example 4. A bank introduces a new service with hidden charges that were not disclosed clearly to customers. A consumer organisation receives several complaints about this and decides to file a case in the State Consumer Commission against the bank on behalf of all affected customers. Which role of a consumer organisation does this illustrate?
Answer:
This illustrates the role of Filing Complaints on Behalf of Consumers (or for general public interest if it affects many consumers).