About Disputes Redressal Commission: UPSC Current Affairs

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Context:

The National Consumer Disputes Redressal Commission (NCDRC) declined to give the State Bank of India (SBI) more time to make submissions in a home loan repayment dispute.

The case, “Madras High Court Justice J Nisha Banu v/s State Bank of India (SBI),” emphasises a fundamental principle of consumer law: no matter how high a person is, their consumer rights remain the same.

About National Consumer Disputes Redressal Commission (NCDRC)

It was established in 1988, under the Consumer Protection Act 1986 and serves as India's highest forum for resolving consumer disputes.

It is headed by a sitting or retired judge of the Supreme Court of India or a sitting or retired High Court Chief Justice. The headquarters is in New Delhi.

It functions as a quasi-judicial body, meaning it has the authority to decide disputes but is not part of the regular court system.

It serves as an apex body within a three-tiered system designed to resolve consumer complaints in an efficient and accessible manner. The three-tiered system includes:

District Consumer Disputes Redressal Forum (DCDRF): Handled consumer disputes with claims up to Rs 50 lakh.
State Consumer Disputes Redressal Commission (SCDRC): Handled consumer disputes with claims between Rs 50 lakh and 2 crore.
National Consumer Disputes Redressal Commission (NCDRC): Handled consumer disputes with claims over Rs 2 crore.

Any person unsatisfied with the NCDRC's order can appeal to the Supreme Court of India within 30 days.

The Consumer Protection Act 2019 replaced the 1986 Act to strengthen consumer rights. It includes provisions for establishing Consumer Protection Councils at the national, state, and district levels to promote consumer awareness.

Highlights of the Consumer Protection Act 2019

The Act defines a consumer as anyone who purchases products or uses services for personal use. It is important to note that this does not include purchasing items for resale or commercial purposes. This difference allows authority to focus on protecting individual consumers, not companies.

Example: A person who purchases a smartphone for personal use is considered a consumer under the Act. However, if a retailer purchases the same smartphone to sell in a store, this act does extend to cover him.

Who can make a complaint?

Consumer
Any voluntary consumer association registered under any law for the time being in force
The Central Government or any State Government
The Central Authority
in case of death of a consumer, his legal heir or legal representative
In case of a consumer being a minor, his parent or legal guardian;

Six Fundamental Rights of Consumers under the Act

Right to Safety: Consumers should be protected against goods and services that could harm their health or life.
Right to Informed: Consumers have the right to know the quality, quantity, potency, purity, standard, and price of goods or services before purchasing.
Right to Choose: Consumers should be free to choose from various goods and services at competitive prices.
Right to be Heard: Consumers can voice their opinions and grievances regarding products and services.
Right to Seek Redressal: Consumers can seek redress against unfair trade practices.
Right to Consumer Awareness: Consumers should be educated about their rights and how to protect them.

Central Consumer Protection Agency

This Act established the Central Consumer Protection Agency (CCPA) to promote and enforce consumer rights. This agency plays a key role in maintaining market integrity and consumer confidence. It operates under the guidance of the Minister of Consumer Affairs, Food and Public Distribution.

The CCPA can investigate claims related to consumer rights violations and misleading advertising. It has the authority to order or recall dangerous goods and withdraw unsafe services. It can impose fines of up to ₹10 Lakh and imprisonment of up to two years for misleading propaganda. If repeated offences occur, the penalties increase significantly.

Consumer Disputes Redressal Commissions

The Act establishes Consumer Disputes Redressal Commissions at three levels to resolve consumer complaints efficiently:

District Level: Handles complaints where the claim is less than Rs 1 crore.
State Level: Deals with cases where the claim is between Rs 1 crore and Rs 10 crore.
National Level: Addresses complaints exceeding Rs 10 crore.

If consumers are displeased with a decision, they can appeal to the higher-level commissions. The Supreme Court serves as the final appellate authority.

Consumer Protection Rules (E-Commerce) Bill 2020

Consumer Protection Rules (E-Commerce) Bill 2020 was introduced under the Consumer Protection Act, 2019 to address consumer concerns in the digital market.

E-commerce entities must provide clear information about return policies, refunds, warranties, and shipping methods.
E-commerce platforms should acknowledge consumer complaints within 48 hours and resolve them within a month. They must also appoint a claims officer to ensure effective consumer issues handling.
E-commerce companies cannot manipulate product prices to create unfair profits.
The seller is responsible for accepting returns and refunding if the product is defective or not as described. For example, if the customer receives a damaged product, he or she can return the product and the seller must process or refund the money immediately.

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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

Source:

Indian Express

PIB

Ministry of Consumer Affairs

Wikipedia