The Supreme Court expressed displeasure against the Centre for not filling up the vacancies in National Consumer Disputes Redressal Commission (NCDRC) despite making a commitment.

The bench gave eight weeks to Centre to fill up the remaining three vacancies after noting that the government has filled only four vacancies. 

It directed the states and Union Territories to fill up all the vacancies in State Consumer Disputes Redressal Commissions (SCDRCs) within eight weeks. 

It directed the Centre to do legislative impact study of Consumer Protection Act, 2019 in four weeks saying that the government is always rushing to make the laws but does not do its impact study on the people.

What is the purpose of NCDRC?

• Under the Consumer Protection Act, 1986, a three-tier quasi-judicial machinery has been set up at district, state and national level for better protection of the interests of consumers and to provide simple and speedy redressal of consumer disputes.

• If a consumer is not satisfied by the decision of a District Forum, he/she can appeal to the State Commission. The consumer can move a petition to the National Commission against the order of the State Commission. 

• The National Consumer Disputes Redressal Commission (NCDRC) is the apex body for redressal of consumer grievances. 

• NCDRC was set up in New Delhi in 1988. The commission is headed by a sitting or retired judge of the Supreme Court of India and has seven members.

• A selection committee recommends names of candidates for appointment as members from amongst the applicants in order of merit for the consideration of the central government. The Centre seeks approval of the Appointments Committee of the Cabinet after scrutiny.

• Members of NCDRC shall hold office for a period of five years. The term of appointment is, however, subject to the maximum age limit of 67 years.

The Consumer Protection Act, 2019

The Consumer Protection Act, 2019 was notified on August 9, 2019 and came into force on July 20, 2020. 

It replaced the Consumer Protection Act, 1986.

It aims to protect the rights of consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.

Provisions of the CP Act, 2019

1) Establishment of CCPA

• Under the provisions of the Act, the Central Consumer Protection Authority (CCPA) was established in July 2020. 

CCPA is empowered to:

• Protect, promote and enforce the rights of consumers as a class, and prevent violation of consumers rights under this Act.

• Prevent unfair trade practices and ensure that no person engages himself in unfair trade practices.

• Ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of this Act or the rules or regulations made thereunder.

• Ensure that no person takes part in the publication of any advertisement which is false or misleading.

• The CCPA can make interventions when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products. 

• The CCPA has an investigation wing, headed by a Director General, which may conduct inquiry or investigation into consumer law violations. 

• The CCPA has been granted wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than one individual.

2) Speedier adjudication

• The 2019 Act emphasises on speedier adjudication of complaints by enabling provisions for consumers to file complaints electronically and for hearing and/or examining parties through video-conferencing. 

• It also provides flexibility to the consumer to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer. This is aimed to provide procedural ease and reduce inconvenience and harassment for the consumers.

3) Product liability

• Provisions for “product liability” action for or on account of personal injury, death, or property damage caused by or resulting from any product has been introduced. 

• The term ‘product seller’ is defined to include a person who is involved in placing the product for a commercial purpose and as such would include e-commerce platforms as well. 

• It provides the basis for product liability action and the liability of a manufacturer to a claimant under which a manufacturer or a service provider has to compensate a consumer if their good/service cause injury or loss to the consumer due to manufacturing defect or poor service.

4) Enhancement of pecuniary jurisdiction

• Revised pecuniary limits have been fixed under the new Act. 

• Accordingly, the District Commission (previously known as District  Fora) can now entertain consumer complaints where the value of goods or services paid does not exceed Rs 1 crore. 

• The State Commission can entertain disputes where such value exceeds Rs 1 crore and is below Rs 10 crore. 

• The National Commission can exercise jurisdiction where such value exceeds Rs 10 crore.

5) E-Commerce Rules

• Under the provisions of the CP Act, 2019, E-Commerce Rules have been notified to prevent unfair trade practices in e-commerce to protect the interest and rights of consumers. 

• These Rules specify duties and liabilities of the e-commerce entities (marketplace & inventory model) and sellers on marketplace e-commerce entities. 

• Such as, under the provisions of E-Commerce Rules, 2020, every e-commerce entity is required to provide details about it on its platform. They are required to provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, security of payment methods, charge-back options, etc.

6) Mediation

• “Mediation” as an Alternate Dispute Resolution (ADR) mechanism has been introduced which aims at giving legislative basis to resolution of consumer disputes through mediation thus making the process less cumbersome, simple and quicker. This is being done under the aegis of the consumer courts.

7) Defining unfair trade practices

• The new Act introduces a specific broad definition of Unfair Trade Practices, which also includes sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.

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