Introduction
The Consumer Protection Act, 2019 provides for the establishment of a 3-tier Consumer dispute redressal machinery at the District, State and National levels.
It provides an alternative dispute resolution mechanism exclusively for consumers and functions as a quasi-judicial body.
- District Consumer Disputes Redressal Commission (District Commission): Established in each district by the state government. More than one District Commission can also be established in a district.
- State Consumer Disputes Redressal Commission (State Commission): Established in the state by the state government. It shall ordinarily function at the state capital and perform its functions at such other places as the state government may notify.
- National Consumer Disputes Redressal Commission (National Commission): Established by the central government. It shall ordinarily function at the national capital region and perform its functions at such other places as the central government may notify. The central government may also establish regional branches of the National Commission. [UPSC 2023]
National Consumer Disputes Redressal Commission (NCDRC)
Composition
- President + not less than 4 or not more than such number of members as may be prescribed.
- Central Government (2020): Prescribed President and not less than four or not more than eleven members. At least one member shall be a woman.
Appointment
- President and Members: Appointed by the central government on the recommendations of a search-cum-selection committee chaired by the CJI/ Judge of SC, who is nominated by the CJI.
- Minimum Age: Should be at least 50 years of age.
- Tenure: 4 years or until they attain the age of 70/ 67 years in the case of the President/ members, whichever is earlier.
- Salary and allowances: The central government may make rules to provide for qualifications, appointments, salaries, allowances, resignation, removal, etc. Neither salary nor other terms shall be varied to his disadvantage after appointment.
Jurisdiction & Powers
1. Pecuniary Jurisdiction
Entertain complaints where the value of the goods/ services paid as consideration exceeds rupees 10 crores.
Update (2021): The central government prescribed new values. This limit was reduced to above 2 crores in 2021.
2. Appellate Jurisdiction
- Entertain appeals against the orders of any State Commission. Appeal may be made within 30 days. (Can entertain after expiry if sufficient cause exists).
- Jurisdiction to entertain appeals against the orders of the Central Consumer Protection Authority (CCPA) within 30 days.
3. Revisional Jurisdiction
Can call for records if State Commission has:
- Exercised a jurisdiction not vested in it by law.
- Failed to exercise jurisdiction so vested.
- Acted in exercise of jurisdiction illegally/with material irregularity.
4. Additional Powers
- May declare terms of contract null and void if unfair to any customer.
- Review of Orders: Power to review any of the orders passed by it, if there is an error apparent on the face of the record.
- Remedy Against Ex-Parte Orders: Aggrieved party can apply to set aside ex-parte orders.
- Transfer of Complaints: Can transfer pending complaints between District/State Commissions.
Appeal Process to Supreme Court
An appeal against the order of the National Commission lies with the Supreme Court. It can be made within 30 days (or after if sufficient cause is shown).
Administrative Control
Administrative control over all State Commissions in matters of:
- Performance/Disposal of cases.
- Investigation of allegations against President/members of State Commission.
- Issuing guidelines for uniform procedures, service of documents, and English translations.
- Oversight via inspection.
Central Consumer Protection Authority (CCPA)
- Established: w.e.f. 24th July, 2020 (Act came into force 20th July 2020).
- Objective: To regulate consumer rights violations, unfair trade practices, and misleading advertisements; to promote and enforce consumer rights.
- Composition: Chief Commissioner and such number of other Commissioners as prescribed, appointed by Central Government.
- HQ: National Capital Region of Delhi (can establish regional offices).
State Consumer Disputes Redressal Commission
Composition & Appointment
- President + Not less than 4 or not more than such number of members as prescribed in consultation with central govt.
- Appointments, salary, and allowances rules made by Central Government.
- Terms cannot be varied to disadvantage after appointment.
Jurisdiction
- Pecuniary: Originally > 1 crore but ≤ 10 crores. 2021 Update: Above 50 lakhs but up to 2 crores.
- Appellate: Appeals against District Commission orders (within 45 days).
- Revisional: Call for records from District Commission.
Other Powers:
- Declare contract terms null/void.
- Review its own orders.
- Transfer complaints between District Commissions.
- Administrative control over District Commissions.
District Consumer Disputes Redressal Commission
- Composition: President + Not less than 2 or not more than such number of members as prescribed in consultation with central govt.
- Rules: Central Govt makes rules for qualifications/appointments/removal. State Govt makes rules for salaries/allowances.
- Vacancies: State govt may direct another District Commission to exercise jurisdiction or another President/member to discharge functions.
- Jurisdiction: Originally up to 1 crore. 2021 Update: Up to 50 Lakhs.
- Location: District headquarters (or other places as notified).
- Review: Power to review orders if error is apparent (within 30 days).
Pecuniary Jurisdiction of the Consumer Commissions
| Name | Under 2021 Rules | Under 2019 Act | Under 1986 Act |
|---|---|---|---|
| District Commission | Up to Rs. 50 lakhs | Up to Rs. 1 crore | Up to Rs. 20 lakhs |
| State Commission | Above Rs. 50 lakhs but up to Rs. 2 crores | Above Rs. 1 crore but up to Rs. 10 crores | Above Rs. 20 lakhs but up to Rs. 1 crore |
| National Commission | Above Rs. 2 crores | Above Rs. 10 crores | Above Rs. 1 crore |
Comparison of Consumer Protection Act (1986 vs 2019)
| Feature | 1986 Act | 2019 Act |
|---|---|---|
| Scope | Limited to unfair trade practices and defective goods/services. | Includes online transactions, e-commerce, product liability, and unfair contracts. |
| Consumer Rights | Six basic rights: safety, information, choice, fair hearing, representation, redressal. | Adds right to be heard in product liability cases and protection against unfair contracts. |
| Redressal Mechanisms | Three-tier system with DCDRFs, SCDRCs, and NCDRC. | Retains three-tier system but introduces online complaint filing, simplified procedures, and higher monetary limits. |
| Penalties | Limited penalties. | Stricter penalties, including imprisonment and higher fines for misleading ads. |
Way Forward
To address existing challenges and strengthen consumer protection, the following initiatives should be considered:
- Increased public awareness campaigns to educate consumers about their rights.
- Streamlining the Consumer Dispute Redressal System to improve efficiency and reduce delays.
- Adequate resource allocation to consumer forums for better functionality.
- Stronger enforcement mechanisms to deter unfair trade practices and hold violators accountable.