Redressal of Consumer Disputes in India

According to the Consumer protection Act, consumer dispute is defined as a dispute in which the person against whom a complaint has been made denies or disputes the allegations cast on him in the complaint.

Consumer redressal practices in ancient India

In ancient India, although there was no organized systematic movement to safeguard interests of consumers, ethical practices were given prime importance. It is astonishing that ancient Indian law makers recognized the need for consumer protection. In Arthashastra, numerous references have been made to the concept of consumer protection against adulteration, exploitation, malpractices and so on. Also, punishments for these offences have also been mentioned.

Genesis for the modern consumer disputes

With advent of rapid industrialization and multifaceted development accompanied with flooding of advertisements for goods and services has led to many changes. For one, it has altered the relationship between the consumer and the trader. Secondly, there is a flood of consumer goods and services in the market. Thirdly, lack of awareness, illiteracy and poverty has increased consumer exploitation, especially among the rural population of the country. Fourthly, with economic development the purchasing capacity of the middle class has increased.

Compared to the developed economies, consumer awareness in India is significantly lower. Promoting the welfare of the consumers has become one of the major concerns for the government.

Factors responsible for consumer exploitation

• Low levels of literacy and ignorance
• Lack of awareness among people in safeguarding their rights
• Poverty and economic inequality
• Huge number of middlemen
• Unethical and false advertisements
• Adoption of modern technologies to exploit consumers
• Greed of the consumers. Example: In some cases, people get cheated by the quick rich schemes of some companies.
• Insufficient monitoring and regulation by the government agencies

Laws for safeguarding Consumer Rights

The following are some of the laws enacted by the government for safeguarding the consumer rights:

• Indian Contract Act, 1872
• Sale of Goods Act, 1930
• Dangerous Drugs Act, 1920
• Agricultural Produce (Grading and Marketing) Act, 1937
• Indian Standards Institution (Certification Marks) Act, 1952
• Prevention of Food Adulteration Act, 1954
• Standard of Weights and Measures Act, 1976
• Consumer Protection Act, 1986.

Consumer Protection Act, 1986

The enactment of this Act was considered as a historic milestone in the consumer movement in the country. This Act aims to provide consumers with effective safeguards against different types of exploitation such as defective goods, unsatisfactory services and unfair trade practices. This Act replaced the Sale of Goods Act, 1930, which was the main piece of legislation for consumer protection.

The Consumer Protection Act, 1986 protects the interests of consumers by establishing three-tier quasi-judicial consumer dispute redressal machinery at the National, State and District levels for settlement of consumer disputes. These are called Consumer Fora and they are quasi judicial bodies. The legislation is applicable to whole of India except J & K, which has its own Consumer Protection Act.

It provides consumers with speedy and inexpensive redressal grievances mechanism and specific relief or award of compensation. It recognizes six of the eight rights of the consumer as provided in the UN charter. It envisages following rights of consumers:

• Right to Protection.
• Right of Information.
• Right of Choice.
• Right of Hearing.
• Right of Redressal.
• Right of Education.

Consumer Protection Councils

The consumer protection Act, 1986 provides for the establishment of consumer protection councils at the state and district level to advise and assist the consumers in seeking and enforcing their rights.

Central consumer protection council

The council is advisory in nature. Its objective is to promote and protect the rights of consumers as laid down in the consumer protection act. The council is required to meet at least once in a year

State consumer protection council

It has been established in each state by the respective state governments. It has the same objective as the central council. The council will have not less than two meetings every year.

Dispute Redressal Agencies

Section 9 of the Consumer Protection Act advocates three-tier redressal of consumer disputes at the national, state and the district levels.

District Consumer Disputes Redressal Forum (DCDRF)

These are also known as district forums. These forums are established by the state government in every district to deal with cases of complaints valuing up to Rs 5 lakh. It has the power of a civil court.

State Consumer Disputes Redressal Commission (SCDRC)

It is the apex body for consumer redressal in states. It has been established in each state and union territory. State commissions could entertain complaints up to INR 10 million. In rare cases, it has the power to take the cases pending at a District Forum in its own hands.

National Consumer Disputes Redressal Commission (NCDRC)

The national commission has been established by the central government. It is the highest forum for consumer disputes Redressal in the country. It can entertain cases where the value of claims exceeds Rs 20 lakh. It has both appellate and revisional jurisdiction.