Model Answer
0 min readIntroduction
Consumer protection is a cornerstone of a fair and efficient market economy. The Consumer Protection Act, 2019, replaced the earlier 1986 Act, aiming to address evolving consumer grievances in the digital age and strengthen consumer rights. This legislation establishes a multi-tiered quasi-judicial machinery for the redressal of consumer disputes, ranging from District Commissions to the National Commission. The Act’s primary objective is to provide simple, speedy, and inexpensive redressal to consumers, ensuring they are not exploited by unfair trade practices. However, the effectiveness of this machinery is subject to various challenges, necessitating a critical evaluation of its functioning.
Machinery for Redressal of Consumer Grievances
The Consumer Protection Act, 2019, establishes a three-tier quasi-judicial machinery:
- District Commission: Handles cases where the value of goods/services and compensation claimed is up to ₹50 lakh.
- State Commission: Deals with cases between ₹50 lakh and ₹2 crore. Also hears appeals against orders of the District Commission.
- National Commission: Handles cases exceeding ₹2 crore. It also hears appeals against orders of the State Commission.
Beyond these commissions, the Act also introduces:
- Central Consumer Protection Authority (CCPA): An investigative agency empowered to investigate, inquire into, and initiate class action suits on behalf of consumers. It can impose penalties on manufacturers, advertisers, and endorsers for misleading advertisements and unfair trade practices.
- Mediation: The Act promotes mediation as an alternative dispute resolution mechanism, offering a faster and more amicable solution.
- E-Daakhil Portal: A digital platform for filing consumer complaints online, enhancing accessibility.
Critical Evaluation of the Functioning of the Machinery
Strengths
- Increased Pecuniary Jurisdiction: The enhanced jurisdiction limits of the District and State Commissions (compared to the 1986 Act) reduce the burden on the National Commission and expedite dispute resolution.
- CCPA’s Powers: The CCPA’s investigative and punitive powers are a significant step towards deterring unfair trade practices. For example, the CCPA recently imposed a penalty on a cosmetic company for misleading advertisements.
- E-Daakhil Portal: The online portal has improved accessibility, particularly for consumers in remote areas. As of December 2023, over 75,000 complaints were filed through the E-Daakhil portal. (Source: Press Information Bureau)
- Mediation as an Option: Mediation offers a cost-effective and quicker resolution compared to traditional litigation.
- Product Liability: The Act introduces provisions for product liability, holding manufacturers and service providers accountable for defective products or deficient services.
Weaknesses
- Pendency of Cases: Despite the new Act, a significant backlog of cases persists. According to data from the Department of Consumer Affairs, as of March 2024, over 65,000 cases are pending across various consumer commissions.
- Infrastructure and Resources: Many consumer commissions lack adequate infrastructure, staffing, and resources, hindering their efficiency.
- Awareness Levels: Consumer awareness regarding their rights and the redressal mechanisms remains low, particularly in rural areas.
- Enforcement Challenges: Enforcing orders passed by consumer commissions can be challenging, especially against large corporations.
- Complexity of Procedures: While the Act aims for simplicity, the procedures can still be complex for lay consumers, requiring legal assistance.
- Limited CCPA Capacity: The CCPA, despite its powers, faces capacity constraints in investigating and prosecuting a large number of cases.
Areas for Improvement
- Strengthening Infrastructure: Investing in infrastructure and increasing the number of consumer commissions, particularly at the district level.
- Capacity Building: Providing training and resources to consumer commission members and staff.
- Raising Awareness: Launching nationwide campaigns to educate consumers about their rights and the redressal mechanisms.
- Streamlining Procedures: Simplifying the complaint filing and hearing procedures.
- Enhancing Enforcement: Strengthening enforcement mechanisms and ensuring compliance with commission orders.
- Digital Literacy: Promoting digital literacy to encourage greater use of the E-Daakhil portal.
| Aspect | Consumer Protection Act, 1986 | Consumer Protection Act, 2019 |
|---|---|---|
| Pecuniary Jurisdiction (District Forum) | ₹20 lakh | ₹50 lakh |
| Pecuniary Jurisdiction (State Commission) | ₹20 lakh - ₹1 crore | ₹50 lakh - ₹2 crore |
| Central Authority | Absent | Central Consumer Protection Authority (CCPA) |
| E-filing of Complaints | Limited | Mandatory E-Daakhil Portal |
Conclusion
The Consumer Protection Act, 2019, represents a significant advancement in consumer rights and redressal mechanisms in India. While the Act has several strengths, including enhanced jurisdiction, the CCPA’s powers, and the E-Daakhil portal, challenges related to pendency, infrastructure, awareness, and enforcement persist. Addressing these weaknesses through targeted investments, capacity building, and awareness campaigns is crucial to ensure the effective functioning of the consumer redressal machinery and empower consumers to exercise their rights effectively. A proactive and consumer-centric approach is essential for building a fair and transparent marketplace.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.