New Rules for Consumer Protection

New Rules for Consumer Protection

News: In exercise of its powers under provisions of the Consumer Protection Act, 2019, the Central Government has notified the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021.The new rules revised pecuniary jurisdiction for entertaining consumer complaints.

Background:
• Currently, the Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for redressal of consumer disputes namely district commissions, state commissions and national commission.
• The Act also stipulates the pecuniary jurisdiction of each tier of consumer commission.
• The Consumer Protection Act, 2019 provides consumers the option of filing complaint electronically. To facilitate consumers in filing their complaint online, the Central Government has set up the E-Daakhil Portal.
• To provide a faster and amicable mode of settling consumer disputes, the Act also includes reference of consumer disputes to Mediation, with the consent of both parties.
• The Consumer Protection Act, 2019 stipulates that “every complaint shall be disposed of as expeditiously as possible and endeavour shall be made to decide the complaint within a period of three months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within 5 months if it requires analysis or testing of commodities.”

Latest Rules:
• Food and Public Distribution, district commissions will have jurisdiction to entertain complaints where the value of the goods or services paid does not exceed ₹50 lakh.
• The State commissions can look onto complaints in the range of ₹50 lakh- ₹two crores.
• The District Commissions will have jurisdiction to entertain complaints where value of the goods or services paid as consideration does not exceed 50 lakh rupees.
• State Commissions shall have jurisdiction to entertain complaints where value of the goods or services paid as consideration exceeds 50 lakh rupees but does not exceed two crore rupees, it notified.
• National Commission will have jurisdiction to entertain complaints where value of the goods or services paid as consideration exceeds two crore rupees.