Categories: Indian Economy

Jurisdictions, complaints, appeals and punishments under Consumer Protection Acts

Consumer Protection Division, under the Ministry of Consumer Affairs, Food & Public Distribution is mandated to implement the Consumer Protection Act, 2019, and Rules/Regulations made under the ibid Act. It is entrusted with the framing of policy related to the protection of the interests of the consumers particularly those grievances arising in the post-sale of goods and services.

Jurisdictions:

The Consumer Protection Act 2019 provides for the establishment of three-tier quasi-judicial consumer disputes redressal machinery at the District, State, and National levels commonly known as “Consumer Commissions” to render simple, inexpensive, and speedy justice to consumers.

JurisdictionsCustomer Protection Act 2019
Pecuniary JurisdictionDistrict Commission – up to 1 crore
State commissionfrom 1 crore to 10 crore
National commissionfrom 10 crore and above
Territorial JurisdictionNational Commission
RegulatorCentral Consumer Protection Authority is formed.
MediationWhere the complainant resides or works
E-CommerceCourts can refer to settlement through mediation.
Product LiabilityThe Consumer Protection Act (CPA) of 2019 holds manufacturers, sellers, and service providers liable for compensating consumers if their products or services are defective and cause harm.  
Video Conferencing  E-commerce transactions will come under the provisions involving direct sales

Complaints:

The Consumer Protection Act 2019 provides a way for consumers to file complaints against suppliers who may be in the wrong. Consumers can file complaints with Consumer Forums, which have special powers to take action and award compensation to consumers. There is no court fee to file a complaint with a Consumer Forum, and consumers don’t need to hire a lawyer to represent them.

Appeals:

Under CPA 2019, Appeal against the order of District Commission [41]: If a party is aggrieved by the order of the District Commission then they may prefer an appeal to the State Commission within 45 days of receiving such order. The State Commission may entertain the plea after 45 days if sufficient reason is given by the party. However, a minimum of 50% of the amount must be paid before the State Commission will hear the appeal.

Under CPA 2019, Appeal against the order of the State Commission [42]: If aggrieved by the decision,the aggrieved party may prefer an appeal to the National Commission within 30 days of receiving the order from the state commission. If sufficient reason is shown then the National Commission can also entertain the plea after the thirty days. However, a minimum of 50% of the amount must be paid before the National Commission will hear the appeal.

Under CPA 2019, Appeal against the order of the National Commission [43]: If aggrieved by the decision then an appeal does lie to the Supreme Court if made within thirty days of receiving the order. If sufficient reason is shown then the Supreme Court can also entertain the plea after the thirty days. However, a minimum of 50% of the amount must be paid before the Supreme Court will hear the appeal.

Punishments:

Under the Consumer Protection Act 2019, a person (by himself or through someone on his behalf) who manufactures/sells / stores/imports / distributes any product containing an adulterant [44] shall be punished with imprisonment and penalties.

OFFENCES AND PENALTIES:

Imprisonment of up to 6 months and a fine of up to 1 lakh rupees – in case of no injury to the consumer;

Imprisonment up to 1 year and a fine of up to 3 lakh rupees – injury not amounting to grievous hurt[46];

Imprisonment up to 7 years and a fine of up to 5 lakh rupees – in case of grievous hurt;

Imprisonment of not less than 7 years, which may extend to life, and a fine of not less than 10 lakhs – in case of death of the consumer.

A person (by himself or through someone on his behalf) who manufactures/sells / stores/imports / distributes spurious goods will be punished with [47]:

Imprisonment up to 1 year and a fine of up to 3 lakh rupees – injury not amounting to grievous hurt;

Imprisonment up to 7 years and a fine of up to 5 lakh rupees – in case of grievous hurt;

Imprisonment of not less than 7 years, which may extend to life, and a fine of not less than 10 lakhs – in case of death of a consumer.

Under CPA 2019, failure to comply with orders passed by the District Commission, the State Commissions, or the National Commission attracted a punishment of imprisonment for a term not less than one month, but which could extend to three years, or with a fine, which was not less than two thousand rupees and could extend up to ten thousand rupees, or with both as in the CPA 2006. Though the New Act retains the same term of imprisonment for non-compliance, the fine has been increased to twenty-five thousand rupees, which may extend to one lakh rupees, or both [39]. Under CPA 2019, Power of Review [40]: Unlike the 1986 Act, where the aggrieved parties did not have any recourse other than filling an appeal to the State or the National Commission to set right the errors made by the District Forum/Commission or the State Commission respectively, under the New Act the District, State, and National Commissions have been vested with the power to review its own orders where an application is filed for within 30 days of passing such an order.

Related article:

PURPOSE, PREAMBLE, EXTENT CONSUMER PROTECTION ACT 2019 NOT OVERRIDING ANY OTHER LAWSALIENT NEW ASPECTS OF CONSUMER PROTECTION ACT, 2019DEFINITIONS IN CONSUMER PROTECTION ACT 2019: NEW ADDITIONS
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EXPLAINED: PRODUCT LIABILITY UNDER THE CONSUMER PROTECTION ACT 2019MEDIATION PROCESS UNDER THE CONSUMER PROTECTION ACT 2019UNFAIR CONTRACTS AND UNFAIR TRADE PRACTICES DEFINED UNDER CPA 2019
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Surendra Naik

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Surendra Naik

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