Optional Grouping: Consumer Complaints

Every person has a right to file the following types of consumer complaints under consumer protection law:

E-commerce complaints

“E-commerce” means buying or selling goods or services (including digital products) over digital or electronic networks¹. It includes the production, distribution, marketing, sale or delivery of goods and services by electronic means ². 

E-commerce entities, such as online shopping websites like Flipkart ³ and Amazon⁴ , have long been treated as service providers who work for a profit⁵. They have been held liable whenever there has been a violation of consumer rights. One of the major reforms brought about by the Consumer Protection Act, 2019 is that it lays down a set of rules to govern these e-commerce entities⁶:

• E-commerce entities will have to respond within 48 hours of complaint.
• Complaints can be made from any place, regardless of where the purchase was made.
• E-commerce entities such as Amazon, Flipkart, are now required to display the details of the sellers, such as their legal name, geographic address, contact details, etc.
• These entities must not directly or indirectly manipulate the goods’ prices, and must not adopt any unfair or deceptive methods of sale.
• They are prohibited from exaggerating the qualities of a product, and posting fake reviews.
• The law mandates the protection of consumers’ personal information so that personal details are kept confidential and the privacy of consumers is protected.

Complaints about misleading advertisements 

An advertisement is a promotion through television, radio, or any other electronic media, newspapers, banners, posters, handbills, wall-writing etc. A misleading advertisement says untrue things about the goods and services, which can mislead the consumer in  buying them⁷ , quality and quantity⁸, or deliberately conceal important information about the product⁹ (such as known side-effects), etc. Advertisers can be sued for making misleading claims in their advertisements. These include claims of being the first toothpaste to have a certain beneficial composition when it actually isn’t¹⁰, or advertising schemes that seek to increase profits without passing on the benefit to the consumers¹¹, etc. 

Complaints about unfair trade practices

Unfair trade practices have a broad definition under the consumer protection law. They include false statements about the goods’ standard, quality and quantity, and the marketing of used/second-hand goods as new goods. It also includes false claims about a warranty, or the warranty period being scientifically untested, etc. This has resulted in several lawsuits, one involving a noodle-maker labelling its packets with false lead content¹², replacing the labels of pharmaceutical drugs to extend the expiry period¹³, marketing adulterated goods with different ingredients than stated on the label¹⁴, etc.

Complaints about restrictive trade practices

Restrictive trade practice means a trade practice which tends to manipulate the price, or delivery, of goods, which affect the flow of supplies in the market. This leads to the consumers facing unfair costs or restrictions. This is usually done in some of the following ways: price fixing, dealing exclusively, restricting the resale values of sold goods, mandating that buying one good or service entails buying other goods or services. One real-life example of this is the inbuilt price of delivery and fixing electronic goods. This ensures that the consumer ends up paying for the service, whether they want to or not, making them bear unfair costs.

Complaints about defective goods

Defective goods are goods¹⁵ with any fault, imperfection or shortcoming in the quality, quantity, purity or standard which is required to be maintained by the seller, under the law in force. Some examples are adulterated or imperfectly brewed beverages, malfunctioning machinery, misshapen artifacts, etc.

Complaints about spurious goods

Spurious goods are those which are falsely claimed to be genuine¹⁶ or are fake or imitative of real, original goods. These are often of inferior quality and infringe upon the trademarks and copyrights of legal owners of the original goods. A crucial example is that of medicines or cheap make-up products found in local markets. Often, spurious medicines are marketed under another drug’s name, or imitate/substitute another drug in a deceptive way¹⁷.

Charging above the MRP (Maximum Retail Price)

Overcharging generally occurs in covert ways, when sellers charge the consumer more than what is prescribed as the Maximum Retail Price of a product. It is a gross violation of consumer rights.

Complaints about food

Presently, the law also addresses grievances related to food products. For example, customers can file their grievances about packaged food like the presence of adulterant, expired goods, missing FSSAI license, etc. or serving issues like the lack of hygiene, presence of pests, etc. at the Food Safety Connect Portal.

 

1. Section 2(16), Consumer Protection Act, 2019.[↩]
2. Electronic Commerce, WTO, accessed at https://www.wto.org/english/thewto_e/minist_e/mc11_e/briefing_notes_e/bfecom_e.htm#:~:text=Electronic%20commerce%2C%20or%20e%2Dcommerce,and%20services%20by%20electronic%20means%22.&text=These%20WTO%20bodies%20were%20instructed,WTO%20agreements%20and%20e%2Dcommerce.[↩]
3. Ajay Kumar v. Flipkart Internet Private Limited, 2018 SCC OnLine NCDRC 549.[↩]
4. Kent RO Systems v. Amazon Seller Services, 2017 SCC OnLine Del 8016.[↩]
5. Rediff.Com India Limited v. Ms. Urmil Munjal, 2013(2) C.P.C. 536.[↩]
6. Consumer Protection (E-Commerce Rules), 2020.[↩]
7. Misleading Advertisements, Department of Consumer Affairs, accessed at https://consumeraffairs.nic.in/more/misleading-advertisements. These advertisements may make false claims about a product or services’ usefulness((Section 2(47)(f), Consumer Protection Act, 2019[↩]
8. Section 2(28)(ii), Consumer Protection Act, 2019[↩]
9. Section 2(28)(iv), Consumer Protection Act, 2019[↩]
10. Colgate Palmolive (India) Ltd. v. Anchor Health & Beauty Care P. Ltd., (2008) 7 MLJ 1119.[↩]
11. Society of Catalysts v. Vodafone Essar Mobile Services Limited, LNIND 2008 SCDRCD 962.[↩]
12. M/S Nestle India Limited v. The Food Safety and Standards Authority of India, W.P. L. No. 1688 of 2015.[↩]
13. Pooja Roy v. Krishnango Bhattacharya, C.R.R 2796 of 2008, Calcutta H.C.[↩]
14. Consumer Guidance Society v. Amway India Enterprises, (2007) C.C 140 of 2007.[↩]
15. Sections 2(10) and 2(11), Consumer Protection Act, 2019.[↩]
16. Section 2(43), Consumer Protection Act, 2019[↩]
17. Drugs and Cosmetics FAQs, Integrated Grievance Redressal Mechanism, accessed at https://consumerhelpline.gov.in/faq-details.php?fid=Drugs%20and%20Cosmetics.[↩]

A complaint ¹ about a product or service can be filed by ² a number of persons under the law, such as:

• People who buy goods or use services for themselves or for their own work in exchange for a payment. ³ For example, if a person takes an Uber cab to work, they are a consumer of a service. If a person buys a car to use it as a taxi and drives it themselves for earning their livelihood, they are a consumer of goods.
• People who use the goods and services with the permission of the buyer who bought such goods for self-consumption or self-employment in exchange of a payment. For example, if a person buys a soap and that soap is used by their family members. All these people are consumers of the soap and can file a complaint in case of any defect in the soap.
• A person who buys goods for commercial purposes can file a complaint during the warranty period of the goods ⁴. For example, if a person buys a computer system for their company and finds any defect in the system within the warranty period of the system, they will be a consumer.
• Multiple consumers ⁵ who share similar grievances or issues. For example, if multiple people wish to complain about the service standards at a restaurant.
• A registered or recognized voluntary association of consumers ⁶ can also file a complaint.
• Legal guardian of a consumer who is a minor. Legal guardian includes a parent or a relative or a person lawfully bestowed with parental obligations.
• Legal representative of a consumer in case the consumer has passed away.
• The Central or State Government can file a complaint.
• The Central Consumer Protection Authority can take notice of a consumer grievance under the direction of the Central Government⁷. Under the law, this is known as the power to take a case suo motu (on its own) ⁸⁸.

1. Section 2(6), Consumer Protection Act, 2019.[↩]
2. Section 2(5), Consumer Protection Act, 2019.[↩]
3. Section 2(7),The Consumer Protection Act, 2019 (Act 35 of 2019[↩]
4. Super Computer Centre vs Globiz Investment Pvt. Ltd., 3 (2006) CPJ 256 NC[↩]
5. Section 2(7), Consumer Protection Act, 2019.[↩]
6. Section 35(1)(b), Consumer Protection Act, 2019.[↩]
7. Section 18(2)(a), Consumer Protection Act, 2019.[↩]
8. Section 18(2)(a), Consumer Protection Act, 2019.[↩]

The consumer protection law specifies relevant authorities and complaint forums¹ that a consumer can approach if their rights² as a consumer are violated. There are three Consumer Disputes Redressal Commissions, at the district³, state⁴, and national level⁵. All these forums have the duty to hear the concern of a consumer and ensure that every concern is given due importance⁶. The jurisdiction of these Commissions is based on:

1. The value (price) of the goods or services availed
2. The place of residence of the consumer or seller, or the workplace of one of the parties, or where the dispute began
3. The place where the person filing the complaint⁷ resides

Complaints must be filed within 2 years since the dispute arose, to be admitted for a hearing at the Consumer Dispute Redressal Commissions⁸. The Complaint Redressal Commissions that can be approached for consumer rights violations and the type of matters adjudicated by them are as follows:

District Consumer Disputes Redressal Commission (DCDRC)

The District Commission is a district-level complaint redressal forum that looks into complaints about goods whose value is below Rupees one crore⁹. The Commission accepts or rejects a complaint within a period of 21 days. If the commission does not respond in the specified time, the complaint will be accepted and looked into by the District Commissions¹⁰. Before rejecting a complaint, the commission must give the complainant the opportunity to be heard. The Commission has the power to order for the removal of any problems or defects from the goods or services availed, or it can order a payment of fine¹¹ as a relief to the complainant. The parties to a case also have the option to file an appeal against the order of the District Commission to the State Commission within 45 days of the District Commission order¹². You can find details of the district commissions given in the National Consumer Redressal website.

State Consumer Disputes Redressal Commission (SCDRC)

The State Commission is a state-level complaint redressal forum located at the capital¹³ of the respective state where complaints with respect to goods having value between Rupees 1 crore to 10 crores can be filed. There are about 35 state commissions in the country where complaints, appeals from the District Commission, and cases about unfair contracts are heard¹⁴. An appeal against the decision of the State Commission can be filed with the National Commission, within 30 days from the date of the order¹⁵. Once such an appeal is filed, it is required to be decided within 90 days by the National Commission¹⁶.

National Consumer Disputes Redressal Commission (NCDRC): 

The National Commission is the upper-most authority for consumer complaints redressals. It is located at New Delhi¹⁷. Complaints about goods or services whose value is above Rupees 10 crores, and appeals against the orders of the State Commission or the Central Consumer Protection Authority, can be filed with the NCDRC¹⁸. An appeal against the decision of the National Commission can be filed with the Supreme Court within a period of 30 days from the date of the order passed¹⁹. The orders of the Commission are published on its website. The Commission has the legal right to publish the orders and no proceedings can be brought against the Commission for publishing these orders²⁰. The National Commission portal also provides video instructions pertaining to registration and filing of an electronic complaint through its forum.

Time for deciding complaints

A consumer complaint must be decided by the Commissions within a period of 3 months. This may be extended to 5 months in case there is a requirement for testing of the products/defects²¹.

Appeals for orders passed by Commissions

The order passed by the Commissions are final if they have not been appealed in the specified period of time²². This rule has exceptions, as the Commission can accept cases for which appeals were not filed in the prescribed time.  Besides these provisions, the cases can be transferred from one district commission to another and from one State Commission to another by the State ²³ and National Commissions²⁴ respectively, if and when the parties apply.

A consumer who has filed a complaint with any of the forums given above, can track their case through the Online Case Status portal. You can ask your lawyer for details of your case number for tracking the case²⁵.

 

1. Chapter IV, Consumer Protection Act, 2019.[↩]
2. Section 2(9), Consumer Protection Act, 2019.[↩]
3. Section 28, Consumer Protection Act, 2019.[↩]
4. Section 42, Consumer Protection Act, 2019.[↩]
5. Section 53, Consumer Protection Act, 2019.[↩]
6. Section 2(9)(iv), Consumer Protection Act, 2019.[↩]
7. Section 2(5), Consumer Protection Act, 2019.[↩]
8. Section 69(1), Consumer Protection Act, 2019[↩]
9. Section 35(1)(a)(i), Consumer Protection Act, 2019.[↩]
10. Section 36(2), Consumer Protection Act, 2019.[↩]
11. Section 39, Consumer Protection Act, 2019.[↩]
12. Section 41, Consumer Protection Act, 2019.[↩]
13. Section 42(2), Consumer Protection Act, 2019.[↩]
14. Section 47(1), Consumer Protection Act, 2019.[↩]
15. Section 51, Consumer Protection Act, 2019.[↩]
16. Section 52, Consumer Protection Act, 2019.[↩]
17. Section 53(2), Consumer Protection Act, 2019.[↩]
18. Section 58(1), Consumer Protection Act, 2019.[↩]
19. Section 67, Consumer Protection Act, 2019.[↩]
20. Rule 12(8), Consumer Protection (Consumer Disputes Redressal Commission) Rules, 2020.[↩]
21. Section 38(7), Consumer Protection Act, 2019.[↩]
22. Section 68, Consumer Protection Act, 2019.[↩]
23. Section 48, Consumer Protection Act, 2019.[↩]
24. Section 62, Consumer Protection Act, 2019.[↩]
25. Rule 7(2), Consumer Protection (Consumer Dispute Redressal Commissions) Rules, 2020.[↩]

Consumers can also complain against unfair trade practices involving digital and other products bought through e-commerce platforms and retailers. Any person who owns, operates or manages any digital or electronic platform offering goods or services for sale, is an e-commerce entity. An e-commerce entity is separately governed by e-commerce rules¹ in India.

These rules are only applicable to professional and commercial businesses and not for an individual acting in their personal capacity². For instance, a consumer can complain against Amazon as it is an e-commerce entity regularly engaged in the activity of sale of goods through its e-commerce website. However, if there are issues with a product on a platform like Amazon, Amazon would be held liable for product liability actions, not the product manufacturer.

Interestingly, the product liability for an e-commerce entity extends beyond India. This means that these platforms are equally liable under the consumer protection law, in addition to their own country’s domestic laws³. For instance, a foreign e-commerce entity such as Liyid delivers its products in India; in case of any harm caused due to defective products, a product liability action can be brought against Liyid in India and in the foreign country.

Liabilities of e-commerce platforms

E-commerce platforms are held liable for the following:

• Price manipulations on their sites,⁴
• Negligence in services provided and discrimination against customers⁵.
• Misleading advertisements, unfair trade practices⁶ and inaccurate descriptions/information of products.
• Refusing to refund or return a defective product⁷.
• Failure to provide warnings or instructions with respect to the goods or services availed by a customer⁸.
• False descriptions, and violations about the authenticity and images of the goods or services advertised for sale on their platform⁹.

However, they will not be liable if the dangers of the product are common knowledge. For example, if a consumer misuses or alters a dangerous product like flamethrowers then the e-commerce entity cannot be held liable for this¹⁰.

Complaining to E-Commerce Platforms

E-commerce platforms must establish a ‘Grievance Redressal Mechanism’ and should appoint a ‘Grievance Officer’ for Indian customers to get their concerns addressed¹¹. The details about the Grievance Redressal Mechanism must be displayed on the e-commerce platform. The Grievance officer must acknowledge the complaint within 48 hours and address the concern within a period of one month¹².

 

1. Consumer Protection (E-Commerce) Rules, 2020.[↩]
2. Proviso to Rule 2, Consumer Protection (E-Commerce) Rules, 2020[↩]
3. Rule 2(2), Consumer Protection (E-Commerce) Rules, 2020.[↩]
4. Rule 4(11)(a), Consumer Protection (E-Commerce) Rules, 2020.[↩]
5. Rule 4(11)(b), Consumer Protection (E-Commerce) Rules, 2020.[↩]
6. Rule 4(3), Consumer Protection (E-Commerce) Rules, 2020[↩]
7. Rule 7(4), Consumer Protection (E-Commerce) Rules, 2020[↩]
8. Section 85(c), Consumer Protection Act, 2019[↩]
9. Rule 5(2), Consumer Protection (E-Commerce) Rules, 2020[↩]
10. Section 87(1), Consumer Protection Act, 2019[↩]
11. Rule 4(4), Consumer Protection (E-Commerce) Rules, 2020[↩]
12. Rule 4(5), Consumer Protection (E-Commerce) Rules, 2020[↩]

A complaint¹ can be filed electronically to the Integrated Grievance Redressal Mechanism portal (INGRAM), or offline with the consumer protection authorities such as district or state commissions to seek relief for consumer rights violations. Further there are helplines as well as phone based applications one can use to register complaints. If the complaint is not resolved, you can take the help of a lawyer to approach the consumer forums as the next step.

Complaint Process: Telephone 

 

Step-1: Check if you are a Consumer under the law

The complainant should be a consumer or an association of consumers².

Step-2: Call the Helpline Number

Consumers can call the National Consumer Helpline: 1800-11-4000 or 14404 to register a complaint, except on national holidays. Alternatively, complaints can also be registered through SMS on + 91 8130009809.

Step-3: Give details about the Complaint

Name, contact details and address of the complainant and the seller must be mentioned to the helpline authority, along with the details of the complaint. The authority will register your complaint and give you a Unique Grievance ID.

Step-4: Track your Application

The grievance is then forwarded to the concerned seller, company, regulator, or authority for action. The action taken is updated against each grievance. Your grievance can be tracked with your Grievance ID by calling the helpline or through the Integrated Grievance Redressal Mechanism portal.

Step-5: Resolution of complaint

If your complaint is not resolved, then you can initiate a legal process by approaching the relevant Consumer Forum. The helpline authority can help in clarifying any doubts that you may have about the legal procedure.

E-Complaint Process: Internet (INGRAM Portal)

The Department of Consumer Affairs has launched a portal known as the Integrated Grievance Redress Mechanism (INGRAM) for bringing all stakeholders such as Consumers, Central and State Government Agencies, Private Companies, Regulators, Ombudsmen and call centres etc. onto a single platform. The portal will also help in creating awareness among consumers to protect their rights and inform them of their responsibilities. Consumers can register their grievances online through this portal.

Step-1: Check if you are a consumer under the law

The complainant should be a consumer under the law, meaning someone who is a consumer of a product or an association of consumers.

Step-2: Register on the INGRAM Portal

The complainant must register themselves as a consumer on the INGRAM portal. The complainant must fill in the required details and documents³to register their complaint, such as name and address of the complainant and the seller, the facts of the dispute and the relief that the complainant seeks³. A one time registration is required for lodging a grievance. For registration, go to the web portal http://consumerhelpline.gov.in and click on the login link. Sign up giving the details required, and verify through your email. The user id and password are created. Using this user id and password, enter the portal and fill in required details of the grievance, attaching necessary documents (if available).

Step-3: Pay the Fee

The complainant must pay the fee⁴(if applicable) for complaint registration through digital payment mode, or apps like BHIM App, UMANG App to the respective Consumer Commissions in accordance with the value of the goods⁵.

Step-4: Track your Application

Every grievance is registered and a Unique Grievance ID is issued. The grievance is forwarded to the concerned company, regulator, or authority for action. The action taken by them is updated against each grievance. The grievances filed can be tracked through the INGRAM portal.

Consumer Courts/Forums

Through the INGRAM portal, efforts are made to ensure that the grievance is redressed by taking up with the authorities concerned, which may be a company, ombudsman etc. However, if the issue is still pending, a consumer has a choice to approach the appropriate consumer court or forums with the help of a lawyer. Only complaints that are filed within 2 years since the dispute arose will be admitted for a hearing at the Consumer Dispute Redressal Commissions.

 

1. Section 2(6), Consumer Protection Act, 2019[↩]
2. Section 35(1), Consumer Protection Act, 2019[↩]
3. Rule 12(1), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020[↩][↩]
4. Section 35(2), Consumer Protection Act, 2019[↩]
5. Rule 7(2), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020[↩]

Every complaint¹ filed under the consumer protection law must be accompanied with a nominal fee that is payable in the form of a demand draft of a nationalized bank or through a postal order², or in electronic form³. The fee structure based on the value of goods or services is given below⁴:

 

Fee payable to the District Consumer Disputes Redressal Commission:

 

 

Fee payable to the State Consumer Disputes Redressal Commission:

 

Fee payable to the National Consumer Disputes Redressal Commission:

 

 

An important thing to note is that the fees so collected goes to the Consumer Welfare Fund, at the State level or the National level, as the case may be. Where such Fund does not exist, it is directed to the State Government⁵. The fee is utilized towards the continuation of consumer welfare projects.

 

1. Section 2(6), Consumer Protection Act, 2019.[↩]
2. Rule 7(1), Consumer Protection (Consumer Complaint Redressal Commissions) Rules, 2020[↩]
3. Section 35(2), Consumer Protection Act, 2019[↩]
4. Section 35(2), Consumer Protection Act, 2019[↩]
5. Rule 7(2), Consumer Protection (Consumer Complaint Redressal Commissions) Rules, 2020[↩]

The Central Consumer Protection Authority has the power to penalize an individual or entity for violating consumer rights. This is ensured through various means such as fines, taking back the defective goods¹, reimbursements for such goods/services², or discontinuation of unfair trade practices³.

Punishments for false or misleading advertisements

The manufacturer, advertiser or endorser is liable for false or misleading advertisements. However, the endorser’s liability in these cases only arises when they have not done their research⁴ before endorsing such an advertisement. The punishment is:

• For the first offence: A fine which may extend up to Rs. 10 lakh and jail time up to 2 years⁵⁵.
• For every repeat offence: A fine which may extend up to Rs. 50 lakh and jail time up to 5 years may be awarded⁵.
• The Central Authority can also prohibit them from endorsing any product for up to 1 year. In case of subsequent offences, it can be extended up to 3 years⁶.
• Failure to comply with these directions of the Central Authority can result in jail time for up to 6 months or a fine extending to Rs. 20 lakh⁷.

 

Punishments for sale of adulterated products

Any action of the manufacturer or retailer involving the sale, import, storage or distribution of adulterated food is punishable. The following punishments apply:

• When there is no injury⁸ to the consumer, like any kind of pain or death, jail time for up to 6 months and a fine of up to Rs. 1 lakh may be granted⁹.
• When the injury does not amount to grievous hurt to the consumer, jail time for up to 1 year and a fine of up to Rs. 3 lakhs may be granted¹⁰.
• When there is grievous hurt to the consumer, jail time for up to 7 years and a fine of up to Rs. 5 lakhs may be granted¹¹.
• When the adulteration has caused the death of the consumer, jail time for not less than 7 years and extending up to life, and a fine of not less than Rs. 10 lakhs may be granted¹².

Additionally, the Consumer Authority may suspend the license of the manufacturer for up to 2 years, when it is the first offence or cancel the license of such manufacturer altogether if the offence is repeated¹³.

Punishments for sale of spurious goods

Spurious goods are those which are falsely claimed to be genuine¹⁴ or are fake or imitative of real, original goods. These are often of inferior quality and infringe upon the trademarks and copyrights of legal owners of the original goods. A crucial example is that of medicines or cheap make-up products found in local markets. Any action of the manufacturer involving the sale, import, storage or distribution of these goods, is punishable as follows:

1. If the injury does not amount to grievous hurt to the consumer, jail time for up to 1 year and a fine of up to Rs. 3 lakhs may be awarded¹⁵¹⁵.
2. When such spurious goods cause grievous hurt to a consumer, jail time up to 7 years and a fine up to Rs. 5 lakhs may be awarded to the manufacturer¹⁶¹⁶.
3. When the good bought has caused the death of a consumer, jail time for a minimum period of 7 years extending up to life jail time and a minimum fine of Rs. 10 lakhs may be awarded¹⁷¹⁷.

 

1. Section 20(a), Consumer Protection Act, 2019[↩]
2. Section 20(b), Consumer Protection Act, 2019[↩]
3. Section 20(c), Consumer Protection Act, 2019[↩]
4. Section 21(5), Consumer Protection Act, 2019[↩]
5. Section 89 & Section 21 (2), Consumer Protection Act, 2019[↩][↩]
6. Section 21(3), Consumer Protection Act, 2019[↩]
7. Section 88, Consumer Protection Act, 2019[↩]
8. Section 2(23), Consumer Protection Act, 2019[↩]
9. Section 90(1)(a), Consumer Protection Act, 2019[↩]
10. Section 90(1)(b), Consumer Protection Act, 2019[↩]
11. Section 90(1)(c), Consumer Protection Act, 2019[↩]
12. Section 90(1)(d), Consumer Protection Act, 2019[↩]
13. Section 90(3), Consumer Protection Act, 2019[↩]
14. Section 2(43), Consumer Protection Act, 2019[↩]
15. Section 91(1)(a), Consumer Protection Act, 2019[↩]
16. Section 91(1)(b), Consumer Protection Act, 2019[↩]
17. Section 91(1)(c), Consumer Protection Act, 2019[↩]

Mediation¹ is an out-of-court settlement where the parties can decide the manner of the proceedings. It helps the speedy settlement of disputes.

The Consumer Protection Act, 2019 has introduced the provision where the relevant Commission can refer a consumer dispute for mediation, when there is a scope of settlement between the parties². However, parties to the mediation are given a time frame of 5 days to accept or reject the process of mediation, as consent is vital for it³. Once a dispute is referred to mediation, the fee paid to the Commission for dispute redressal is refunded to the parties⁴.

Process of Mediation

The mediation proceeding may be conducted in the following way:

Step-1: It would be held at a ‘Consumer Mediation Cell’ which would have a panel of mediators to settle disputes. This cell maintains a list of cases and records⁵ of the proceedings⁶.

Step-2: Every mediator is expected to act fairly and judiciously while deciding the matter⁷. A fee is also paid to the mediator before the proceedings begin⁸.

Step-3: Mediation would be conducted in the presence of both parties⁹ and will remain confidential¹⁰.

Step-4: The parties must provide all the relevant information and documents to the mediator¹¹.

Step-5: If the parties come to an agreement after the mediation proceedings within 3 months¹², a ‘settlement report’ would be forwarded to the Commission along with the signatures of the parties¹³.

Step-6: The concerned Commission is required to pass an order within the 7 days of receiving the ‘settlement report’ of the parties¹⁴.

Step-7: In case no agreement has been reached through mediation, the same is communicated to the Commission through a report of proceedings. The Commission would then hear the issues of the concerned consumer dispute and decide the matter¹⁵.

Step-8: A dispute cannot be taken to other proceedings, like arbitration or court litigation, once it has undergone the mediation procedure¹⁶.

Complaints which cannot be settled by mediation

However, the following matters cannot be referred to mediation¹⁷

• Serious medical negligence or one that results in death.
• Fraud, forgery, coercion.
• Applications for compounding of offences¹⁸ by either of the parties.  This means that proceedings about these offences can be settled between the parties upon the payment of fine unless the commission of such offence has recurred in a span of 3 years¹⁹.
• Criminal offences and public interest issues. These include issues concerning the public who are not parties to the case. For example, violation of privacy in terms of electronic bank transactions on e-commerce platforms.

 

1. Section 2(25), Consumer Protection Act, 2019[↩]
2. Section 37(1), Consumer Protection Act, 2019[↩]
3. Section 37(2), Consumer Protection Act, 2019[↩]
4. Rule 5, Consumer Protection (Mediation) Rules, 2020[↩]
5. Regulation 11(7), Consumer Protection (Mediation) Regulations, 2020[↩]
6. Section 74, Consumer Protection Act, 2019[↩]
7. Section 77, Consumer Protection Act, 2019[↩]
8. Rule 8(6), Consumer Protection (Mediation) Rules, 2020[↩]
9. Regulation 11(1), Consumer Protection (Mediation) Regulations, 2020[↩]
10. Regulation 12, Consumer Protection (Mediation) Regulations, 2020[↩]
11. Regulation 11(6), Consumer Protection (Mediation) Regulations, 2020[↩]
12. Regulation 11(2), Consumer Protection (Mediation) Regulations, 2020[↩]
13. Sections 80 (1) and 80 (2), Consumer Protection Act, 2019[↩]
14. Section 81(1), Consumer Protection Act, 2019[↩]
15. Sections 80(3) and 81(3), Consumer Protection Act, 2019[↩]
16. Rule 6, Consumer Protection (Mediation) Rules, 2020[↩]
17. Rule 4, Consumer Protection (Mediation) Rules, 2020[↩]
18. Section 96, Consumer Protection Act, 2019[↩]
19. Sections 88 and 89, Consumer Protection Act, 2019.[↩]

Given below are the details and functions of all the consumer protection authorities:

Central Consumer Protection Authority¹

The Central Consumer Protection Authority (CCPA) aims to promote, protect and enforce the rights of consumers collectively. The CCPA is empowered to:

• Conduct investigations into violation of consumer rights and start prosecutions on complaints received.
• Order recall of unsafe goods and services
• Order discontinuation of unfair trade practices and misleading advertisements
• Impose penalties on manufacturers, endorsers and publishers of misleading advertisements².

It is headquartered in New Delhi³. The CCPA can begin to inquire into the mentioned issues either when they receive complaints, or on their own.

Consumer Protection Councils⁴

The Central Consumer Protection Council has advisory functions, giving suggestions about the promotion and protection of consumer rights. Similarly, state-level units called State Consumer Protection Councils and District Consumer Protection Councils are also formed which perform similar advisory functions. Some of the other bodies that also perform similar roles (such as spreading awareness) include, Consumer Education and Research Centre (Gujarat) , Bureau of Indian Standards, Federation of Consumer Organization in Tamil Nadu, Mumbai Grahak Panchayat, etc.

 

1. Chapter III, Consumer Protection Act, 2019[↩]
2. Central Consumer Protection Authority established to promote, protect and enforce the rights of consumers, PIB, accessed at https://pib.gov.in/PressReleasePage.aspx?PRID=1642422.[↩]
3. Notification by Ministry of Consumer Affairs, Food and Public Distribution dated 23 July, 2020, accessed at https://consumeraffairs.nic.in/sites/default/files/Estt%20of%20CCPA.pdf, but there is also scope to set up regional centers throughout the nation((Section 10(3), Consumer Protection Act, 2019.[↩]
4. ^{Chapter II, Consumer Protection Act, 2019.[↩]}