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Explain the three-tier redressal machinery provided by the Consumer Protection Act for the redressal of consumers' grievances. - Commercial Studies

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Question

Explain the three-tier redressal machinery provided by the Consumer Protection Act for the redressal of consumers' grievances.

Answer in Brief

Solution

The Consumer Protection Act has three levels to address consumer grievances: district, state, and national.

  1. District Commission: The District Forum consists of a president and two other members. The president can be a retired or active judge from the District Court. The state government appoints them. This agency accepts complaints for goods or services valued less than Rs 20 lakhs.
    The agency sends items for laboratory testing and makes choices based on facts and reports. If the aggrieved party is dissatisfied with the district forum's jurisdiction, they can appeal the judgement to the State Commission within 30 days by submitting Rs 25000 or 50% of the penalty amount, whichever is smaller.
  2. State Commission: The State Commission consists of a president and two additional members. The president must be a retired or active judge of the high court. They are all appointed by the state government. Complaints for items worth more than Rs 20 lakhs but less than Rs 1 crore can be submitted with the State Commission. Once received, the commission contacts the party involved and sends the goods for laboratory testing if necessary.
    If the aggrieved party is not pleased with the judgement, they can submit an appeal with the National Commission within 30 days by depositing Rs 3500 or 50% of the penalty amount, whichever is less.
  3. National Commission: The National Commission consists of a president and four members, one of whom is a woman. The central government appoints them. If the worth of the products exceeds Rs 1 crore, a complaint can be made with the National Commission. After receiving a complaint, the National Commission notifies the party involved, sends the items for testing if necessary, and renders judgment.
    If an aggrieved party is dissatisfied with the judgement, they can submit a complaint to the Supreme Court within 30 days.
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Establishment of Central Consumer Protection Authority (Ccpa)
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Chapter 4: Consumer Protection - EXERCISES [Page 56]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 4 Consumer Protection
EXERCISES | Q 7. | Page 56

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