Grievance Redressal Mechanism - Study Notes

Grievance Redressal Mechanism - Class 12 Commerce, Chapter 18

Unit 6, Consumer Protection. The chapter opens with Thirukkural 738 (the five ornaments of a kingdom) and Mahatma Gandhi's words: a customer is the most important visitor on our premises; we depend on him, and he is the purpose of our work.

18.01 Grievance and need for redressal

• Under the modern marketing philosophy the consumer is king, yet consumers are often exploited.
• Reasons in India: shortage of many products, monopoly power of a few firms, and a large majority of consumers who are ignorant, illiterate, poor and not united.
• Forms of exploitation: misleading advertisements, poor quality goods, short weights and measures, overcharging.

18.02 Consumer Councils

• The Consumer Protection Act provides for Consumer Protection Councils at the District, State and Central levels.
• Purpose: spread consumer awareness; promote and protect consumers' rights.

18.03 Three tier courts (quasi-judiciary)

At present there are more than 620 District Forums and more than 30 State Commissions; the NCDRC at the apex sits in New Delhi.

18.04 District Forum

• Set up by the State Government in each district under Section 9 of the Consumer Protection Act, 1986; a district may have more than one.
• Complaints may be filed by a consumer, the Central or State Government, or a group of consumers; not only by the affected person.
• Members: a President who is, has been or is qualified to be a District Judge, and two other members of ability, integrity and standing, one of whom must be a woman.
• Powers: its proceedings are deemed judicial proceedings under sections 193 and 228 of the Indian Penal Code, and it is deemed a Civil Court.
• Appeal: an aggrieved party may appeal to the State Commission.

18.05 State Commission

• Also called the State Consumer Disputes Redressal Commission; it covers both goods and services and protects consumers against defects, deficiencies and unfair and restrictive trade practices.
• President: a person who is or has been a Judge of a High Court, appointed by the State Government; plus two other members.
• Jurisdiction: complaints within the State above Rs 20 lakhs and below Rs 1 crore; appeals against orders of any District Forum in the State.
• Powers: call for records of disputes before any District Forum; have books, documents or commodities produced and examined; obtain information needed under the Act.
• It may reverse or confirm District Forum orders. Appeal against its order lies to the National Commission within 30 days.

18.06 National Commission (NCDRC)

• Quasi-judicial commission set up in 1988 under the Consumer Protection Act, 1986; head office in New Delhi; constituted by a Notification.
• Members: five, one from the judiciary, the others of ability, knowledge and experience from other fields, including a woman.
• Jurisdiction (Section 21): complaints above Rs 1 crore; revising State Commission orders; calling for records from State Commissions and District Forums.
• Powers: uniform hearing procedure; prior service of copies of documents to the opposite party; speedy grant of copies; overseeing State Commissions and District Forums without interfering with their quasi-judicial freedom.
• Appeal (Section 23): a person aggrieved by its order may appeal to the Supreme Court within 30 days.
• Complaints can be registered on 1800-11-4000 or 14404 (9.30 AM to 5.30 PM, except national holidays) or by SMS to 8130009809.

18.07 Voluntary organisations for consumer awareness

• Voluntary consumer organisations are formed voluntarily by consumers to protect their rights and interests.
• The Department of Consumer Affairs (DCA) operates the Consumer Welfare Fund (CWF), which gives grants to these organisations, including for comparative testing of products.
• Awareness efforts: publishing brochures, journals and monographs; conferences, seminars and workshops; educating consumers to help themselves; special education for women about consumerism.
• Other work: testing products, filing suits for consumers, protesting against adulteration, helping educational institutions, building a network of associations and supporting the government.
• The IOCU, first established in 1960, has over 250 member organisations in 120 countries, with its head office in London.

Filing a complaint

• First step: a legal notice to the seller or company, giving the consumer's details, the problem, action expected and time allowed.
• Who can complain: a consumer, a registered Voluntary Consumer Association, the Central Government, a State Government or Union Territory, or consumers with the same interest.
• When: loss from unfair trade practice, defective goods, deficient services, price above the displayed or legal price, hazardous goods offered for sale.
• How: within 2 years of the cause of action; no stamp paper; in person, through an agent or by post; no advocate needed.
• Reliefs: remove defects, replace goods, refund price, compensation, stop unfair trade practices, withdraw hazardous goods, pay the complainant's costs.
• Appeals at each level within 30 days; no fee for an appeal before the State or National Commission.