12th Standard Commerce — Grievance Redressal Mechanism Online Test

About Grievance Redressal Mechanism

Medium ~40 min study

Grievance Redressal Mechanism is the eighteenth chapter of the Tamil Nadu State Board Class 12 Commerce book and the second lesson of Unit 6, Consumer Protection. It opens with Thirukkural couplet 738 and Mahatma Gandhi's words that the customer is the most important visitor on our premises.

The lesson explains why consumers are exploited, the Consumer Protection Councils, the three tier quasi-judicial courts set up under the Consumer Protection Act, 1986, the role of voluntary consumer organisations, and the step-by-step procedure for filing and appealing a consumer complaint.

This page gives the five printed one mark questions of the book exercise, checked against the lesson and the book's answer key, followed by additional questions on the forums, their jurisdiction, sections of the Act, appeals, complaints and the IOCU, each with a short explanation.

What you'll learn

• Explain why consumers need a grievance redressal mechanism.
• Describe the three tier consumer courts and their pecuniary jurisdiction.
• State the members, powers and appellate provisions of each forum.
• Name the sections of the Consumer Protection Act, 1986 linked to each forum.
• Describe the role of voluntary consumer organisations.
• Outline the procedure for filing a consumer complaint and the reliefs available.

Before you start

• Chapter 16 on consumerism and the Consumer Protection Act, 1986.
• Chapter 17 on the rights, duties and responsibilities of consumers.
• A basic idea of courts and appeals in India.

Grievance Redressal Mechanism explained

What this lesson covers

Grievance and need for redressal

Shortage of products, monopoly power of a few firms, and consumers who are ignorant, poor and not united lead to exploitation through misleading advertisements, poor quality goods, short weights and overcharging.

Consumer Councils

The Consumer Protection Act provides for councils at the District, State and Central levels to spread awareness and protect consumer rights.

Three tier courts

District Forum (up to Rs 20 lakhs, set up under Section 9, headed by a District Judge), State Commission (above Rs 20 lakhs to Rs 1 crore, headed by a High Court Judge) and National Commission (above Rs 1 crore, set up in 1988, five members, head office New Delhi).

Appeals

District Forum to State Commission, State Commission to National Commission, and National Commission to the Supreme Court under Section 23, each within 30 days.

Voluntary consumer organisations

The Department of Consumer Affairs runs the Consumer Welfare Fund. Organisations publish brochures, hold seminars, test products, file suits, oppose adulteration and support the government.

Complaints and reliefs

A legal notice comes first. A complaint is filed within 2 years, without stamp paper or advocates, and reliefs range from repair or replacement to refund and compensation.

Common mistakes to avoid

• Mixing up the limits: the District Forum takes claims up to Rs 20 lakhs, the State Commission up to Rs 1 crore, the National Commission above Rs 1 crore.
• Confusing the sections: Section 9 sets up the District Forum, Section 21 gives the National Commission's jurisdiction and Section 23 allows appeals to the Supreme Court.
• Thinking the NCDRC was set up in 1986. The Act is of 1986; the Commission was set up in 1988.
• Assuming a complaint needs stamp paper or an advocate. Neither is required.
• Forgetting that every appeal, at each level, must be filed within 30 days.

Test yourself on these with the practice test, then check the worked reasoning in the solved MCQs.

Frequently asked questions

What is meant by grievance redressal mechanism?

It is the system set up to settle consumers' complaints against sellers, manufacturers and service providers. In India it consists of the three tier consumer courts under the Consumer Protection Act, 1986, supported by consumer councils and voluntary organisations.

What is the District Forum?

It is the first tier consumer court set up by the State Government in each district under Section 9 of the Consumer Protection Act, 1986. It is headed by a District Judge and hears complaints valued up to Rs 20 lakhs.

What is the State Commission?

It is the State Consumer Disputes Redressal Commission, headed by a person who is or has been a High Court Judge. It hears complaints above Rs 20 lakhs up to Rs 1 crore and appeals against District Forum orders.

What do you know about the National Commission?

The National Consumer Disputes Redressal Commission is a quasi-judicial body set up in 1988 under the Consumer Protection Act, 1986, with its head office in New Delhi. It hears complaints above Rs 1 crore and appeals from State Commissions.

Who can make a consumer complaint?

A consumer as defined under the Act, a registered Voluntary Consumer Association, the Central Government, a State Government or Union Territory, and one or more consumers representing many consumers with the same interest.

What is the time limit for appeals?

Appeals from the District Forum to the State Commission, from the State Commission to the National Commission, and from the National Commission to the Supreme Court must each be filed within 30 days from the date of receipt of the order.

What is the IOCU?

The International Organisation of Consumers Unions was first established in 1960 for cross-border campaigns and sharing knowledge. It has over 250 member organisations in 120 countries and its head office is in London.