Question

Describe the judicial system set up by the government for consumer protection.

Hint:

Remember the three-tier structure and its hierarchy: District \(\rightarrow\) State \(\rightarrow\) National. The main difference between them is their pecuniary (monetary) jurisdiction. Be aware that these monetary limits were significantly changed by the Consumer Protection Act, 2019.

Answer 1

The government of India, under the Consumer Protection Act, has set up a three-tier quasi-judicial machinery for the speedy and inexpensive redressal of consumer disputes. This system functions at the district, state, and national levels.
The three tiers are: \begin{enumerate} \item District Consumer Disputes Redressal Commission (District Commission): \[\begin{array}{rl} \bullet & \text{Jurisdiction: This is the lowest level, established in each district. It entertains complaints where the value of the goods or services paid as consideration does not exceed Rs. 50 lakh (as per the 2019 Act).} \\ \bullet & \text{Composition: It consists of a President and at least two other members.} \\ \bullet & \text{Appeal: An appeal against the order of the District Commission can be made to the State Commission.} \\ \end{array}\] \item State Consumer Disputes Redressal Commission (State Commission): \[\begin{array}{rl} \bullet & \text{Jurisdiction: This is the middle tier, established in each state capital. It hears cases where the value of goods or services is more than Rs. 50 lakh but does not exceed Rs. 2 crore. It also hears appeals from the District Commissions.} \\ \bullet & \text{Composition: It consists of a President (who is or has been a High Court Judge) and at least four other members.} \\ \bullet & \text{Appeal: An appeal against the order of the State Commission can be made to the National Commission.} \\ \end{array}\] \item National Consumer Disputes Redressal Commission (National Commission): \[\begin{array}{rl} \bullet & \text{Jurisdiction: This is the apex body, located in New Delhi. It has jurisdiction over cases where the value of goods or services exceeds Rs. 2 crore. It also hears appeals from the State Commissions.} \\ \bullet & \text{Composition: It consists of a President (who is or has been a Supreme Court Judge) and at least four other members.} \\ \bullet & \text{Appeal: An appeal against the order of the National Commission can be made to the Supreme Court of India.} \\ \end{array}\] \end{enumerate}