The cornerstone of consumer rights in India is the Consumer Protection Act, 2019. Its aim is to ensure fair, equitable and consistent outcomes for consumers while balancing the interests of providers. The Act established three-tier quasi-judicial bodies to help resolve consumer disputes. It also introduced the concept of product liability and provided provisions for filing complaints electronically. Additionally, the Act encourages mediation as an alternative dispute resolution method.
Consumer Protection Amendments: Jurisdiction Rules, 2021
The Central Government recently employed its powers granted under the Consumer Protection Act, 2019 to announce the Consumer Protection (Jurisdiction of the District Commission, the State Commission, and the National Commission) Rules, 2021. These modifications refine the pecuniary jurisdiction assigned to each tier of the consumer commission, significantly altering the monetary limits for complaints that these commissions can entertain.
Enhanced Pecuniary Jurisdiction Under Revised Rules
Under the newly established rules, the District Commissions can now handle cases up to Rs. 50 Lakh, which was previously limited to less than Rs. 1 Crore. State Commissions will now manage matters involving more than Rs. 50 Lakh to Rs. 2 Crore, a sharp rise from the earlier limit of Rs. 1 Crore to Rs. 10 Crore. Finally, any case involving over Rs. 2 Crore will be managed by the National Commission, an increase from the previous boundary of more than Rs. 10 Crore.
Consumer Protection Act, 2019: Key Aspects
One of the significant aspects of the Consumer Protection Act, 2019, is the introduction of product liability. This provision mandates that manufacturers, product service providers or product sellers are liable to compensate for any injury or loss caused by defective products or services.
Three-tier Quasi-judicial Mechanism
The Act also establishes a three-tier quasi-judicial system to address consumer disputes. This system comprises the District Commissions, the State Commissions, and the National Commission.
Ensuring Timely Resolution of Complaints
A critical feature of the Act is the time-bound disposal of complaints. It stipulates that all complaints should be resolved expeditiously, ideally within three months of notice receipt from the opposing party. For cases requiring analysis or testing of commodities, the Act has laid down a five-month period.
Facilitating Electronic Filing of Complaints
Under the provisions of the Act, consumers can now file complaints electronically, thereby simplifying the grievance redressal procedure. To assist consumers with online complaint filing, the Central Government has established the E-Daakhil Portal.
Mediation as an Alternative Dispute Resolution Method
The Act encourages mediation as an effective way to resolve consumer disputes. This method not only saves time and money for all parties involved but also aids in reducing the overall case backlog.