Consumer Protection Act 2019: Cental, State and District Consumer Protection Council

Meaning of Consumer Dispute

A Consumer Dispute means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint. A Consumer dispute arises when there is a complaint by a consumer and the person against whom the complaint has been made denies or disputes the allegations contained in the complaint.

When a material proposition of fact or law is affirmed by one party and denied by the other, issues arise, and the Commission frames those issues in the form of questions. Each of such allegations made by the Complainant and denied by the defendant becomes a “consumer dispute.”

Consumer Protection Councils

The Consumer Protection Act provides for the constitution of Consumer Protection Councils at the Central, State, and District levels.

1. The Central Consumer Protection Council

The Central Government may, by notification, establish a council to be known as the Central Consumer Protection Council (hereinafter referred to as the Central Council).

Membership:

a) The Minister in charge of consumer affairs in the Central Government, who shall be its Chairman.

b) Such number of other official or non-official members representing such interests as may be prescribed.

Objects of the Central Council

The objects of the Central Council shall be to promote and protect the following rights of the consumers:

a) The right to be protected against the marketing of goods and services which are hazardous to life and property.

b) The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, so as to protect the consumer against unfair trade practices.

c) The right to be assured, wherever possible, access to a variety of goods and services at competitive prices.

d) The right to be heard and to be assured that consumers' interests will receive due consideration at appropriate forums.

e) The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers.

f) The right to consumer education.

2. The State Consumer Protection Councils

The State Government may, by notification, establish a council to be known as the State Consumer Protection Council (hereinafter referred to as the State Council).

Membership:

a. The Minister in-charge of consumer affairs in the State Government who shall be its Chairman.

b. Such number of other official or non-official members representing such interests as may be prescribed by the State Government.

Objects of State Council: The objects of every State Council shall be to promote and protect within the State the rights of the consumers laid down in the objects of the Central Council.

3. The District Consumer Protection Council

The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council (hereinafter referred to as the District Council).

Membership:

a. The Collector of the district (by whatever name called) who shall be its Chairman.

b. Such number of other official and non-official members representing such interest as may be prescribed by the State Government.

Objects of the District Council: The Objects of every District Council shall be to promote and protect within the district the rights of consumers laid down in the objects of the Central Council.

Establishment of Consumer Disputes Redressal Agencies

There shall be established for the purposes of this Act, the following agencies, namely:

a) A District Consumer Disputes Redressal Commission established by the State Government in each district of the State by notification. The State Government may, if it deems fit, establish more than one District Commission in a district.

b) A State Consumer Disputes Redressal Commission established by the State Government in the State by notification.

c) A National Consumer Disputes Redressal Commission established by the Central Government by notification.

Consumer Court as per Area and value

The Consumer Commissions are 3-tiered.

1. District Consumer Disputes Redressal Commission

At the lowest level are the District Commissions, established in each District. These have jurisdiction to entertain complaints where the value of goods or services and the compensation claimed does not exceed ₹1,00,00,000 (ONE CRORE).

A complaint can be filed in a District Commission within the local limits of which:

a. The opposite party resides or carries on his business or works for gain, or b. The cause of action arises, or c. The complainant resides or personally works for gain (a key new provision under CPA 2019).

2. State Consumer Disputes Redressal Commission

The State Consumer Disputes Redressal Commission is established in each state and has jurisdiction to entertain complaints where the value of goods or services and the compensation claimed exceeds ₹1,00,00,000 (ONE CRORE) but does not exceed ₹10,00,00,000 (TEN CRORES).

3. National Consumer Disputes Redressal Commission

The National Consumer Disputes Redressal Commission has jurisdiction to entertain complaints where the value of the goods or services and compensation claimed exceeds ₹10,00,00,000 (TEN CRORES).