Question 4: Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986.
Answer:
For the redressal of consumer grievances, the Consumer Protection Act, 1986 provides for setting up of a three-tier machinery at the district, state and the national levels. These agencies are:
1. District Forum or District Consumer Dispute Redressal Forum
- The State Governments are required to establish District Forums in each district.
- Each District Forum consists of a chairman and two members appointed by the State Government, one of whom should be a woman.
- A District Forum can receive consumer complaints, where the value of goods or services and the compensation claimed is not more than ₹20 lakh.
- The complaint can be filed by a consumer to whom goods are sold or services rendered, or any recognised consumer association.
- On receiving the complaint, the District Forum shall refer the complaint to the opposite party concerned and send the sample of goods for testing in a laboratory. The opposite party is the seller, manufacturer or any organisation against whom the complaint has been filed.
- The district Forum, after being satisfied that the goods are defective or there is some unfair trade practice, can issue an order to the opposite party directing him to either resolve the issue or replace the goods, or return the price paid , or pay compensation to the consumer for loss or injury, etc.
2. State Commission or State Consumers Disputes Redressal Commission
- State Commission is set-up by the State government and its jurisdiction Is restricted to the boundaries of the state concerned.
- The State Commission shall consist of a President, who is or has been a judge of a High Court and two other members, one of whom is a woman. All the three shall be appointed by the State Government.
- Only those complaints can be filed, where the value of goods or services and compensation claimed is more than ₹ 20 lakh but not more than ₹ 100 lakh. The appeals against the orders of any District Forum can also be filed before the State Commission, within 30 days of passing of the order.
- The State Commission, after being satisfied that the goods were defective, can issue an order directing the opposite party to either remove the defect or replace the goods or return the price paid or pay compensation to the consumer for loss or injury etc.
3. National Commission or National Consumer Disputes Redressal Commission
- The National Commission is set-up by the central Government.
- It shall consist of a President, who is or has been a judge of the Supreme Court and four other members appointed by the Central Government one of whom shall be a woman.
- All complaints pertaining to those goods or services and compensation whose value is more than ₹ 100 lakh can be filed. Appeals against the order of any State Commission can also be filed before the National Commission, within 30 days of passing of the order.
- The National Commission has the power to issue orders for recall of defective or unsafe products for replacement or removal of deficiency in service. It can make the manufacturer comply with safety provisions and pay compensation for loss or injury caused.
- An order passed by the National Commission is appealable before the Supreme Court.
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