District, State, and National Consumer Disputes Redressal Commissions: jurisdictions, Complaints, appeals, and punishments

The Consumer Protection Act 2019 was notified on August 9th, 2019. However, it came into effect on July 20th 2020. An Act that makes provision for the establishment of consumer councils and other authorities for the settlement of consumers’ disputes and matters connected therewith.

Under the Consumer Protection Act 2019, a consumer is defined as a person who “buys any goods” and hires or avails of any service” for consideration but does not include a person who obtains goods for resale or goods or services for commercial purposes. The 2019 Act seeks to widen the scope of this definition. Thus, a Consumer will now mean any person who “buys any goods” and “hires any service” which shall include both online and offline transactions through electronic means, teleshopping, direct selling, or multi-level marketing. In the 1986 Act, the definition of a consumer was only limited to buying goods or services and did not specifically include e-commerce transactions. However, this lacuna has been addressed by the New 2019 Act.

E-commerce has been specifically mentioned and is defined as buying and selling of goods/services/digital products, online. Further, the Central government is empowered to take appropriate measures (framing of rules, regulations, guidelines, etc.,) to prevent unfair trade practices in e-commerce and direct selling.

The 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. This is known as product liability.

The Consumer Protection Act 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.

The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.

Consumer Disputes Redressal Commissions (CDRCs) are a three-tier system of agencies that resolve consumer complaints in India: The Consumer Protection Act 2019 was notified on August 9th, 2019, replacing the Consumer Protection Act 2006. However, it came into effect on July 20th 2020.

National Consumer Disputes Redressal Commission (NCDRC): The apex body, headed by a retired or sitting Supreme Court judge. The NCDRC is responsible for providing speedy and inexpensive resolution of consumer disputes. 

State Consumer Disputes Redressal Commissions: These commissions operate at the state level.

District Disputes Redressal Commissions: These commissions operate at the state level.

The Consumer Protection Act, 2019 when compared with the 1986 Act provides for greater protection of consumer interests taking into consideration the current age of digitization. The major changes in the new Consumer Protection Act 2019 compared to the 1986 Acts are as follows:

The provisions [100] of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.

The Consumer Protection Act 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.

Penalty for non-compliance of orders:

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.

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.

OFFENCES AND PENALTIES

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] will be punished with [45]:

• 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.

*E-COMMERCE AND ITS RULES

These regulations cover a broad range of clauses, such as those about data protection, openness, product quality, and dispute settlement. They work to make sure that e-commerce platforms uphold fairness, accountability, and moral standards while giving customers convenient ways to voice complaints. To prevent unfair trade practices in E-Commerce, and direct selling and also to protect the interests and rights of the consumers, the Central Government shall take all necessary steps and measures to ensure the same.

E-commerce* has been specifically mentioned and is defined as the buying and selling of goods/services/digital products, online. Further, the Central government is empowered to take appropriate measures (framing of rules, regulations, guidelines, etc.,) to prevent unfair trade practices in e-commerce and direct selling.

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