Notes on consumer redressal processes
Answers
Answer:
Procedure for Consumer Grievance Redressal in India Introduction:
An economic set up in a society consists majorly of two elements, the seller who provides the goods and services in exchange for money and the consumer who buys such goods or avails such services. Since without the consumer, the seller cannot sell his product or services and compensate for the expenses that he has incurred while manufacturing the product, the consumer usually dictates the market and hence goes the
saying ‘consumer is the king’.
Since times immemorial, efforts have been made to protect the interests of the consumers and to imbibe fair trading practices amongst the traders or sellers. The Manu Smriti referred to the problems of adulteration and fraud in selling and also laid
down confiscation of property as a punishment for the same. In Kautilya’s Arthas
hastra, the director of trade was mentioned who was essentially in charge of ensuring that fair trade practices are followed, and the punishment for non-observance of these practices was as severe as cutting off
one’s hand
.
1
The Arthashastra also tackled problems relating to standards of weights and measures, black marketing, smuggling, adulteration, etc. In the medieval period, i.e. during the Muslim rule, strict rules were established at the market place and underweighting of the products by the traders was penalized.
2
In the modern era, the British system replaced the Indian system, and legislations were established. The Sale of Goods Act, 1930 significantly safeguarded the interests of the buyer and the Indian Penal Code, 1860 imposed criminal liability on the traders involved in the use of false weights and measures, the sale of adulterated food or drinks, noxious food or drink, and the sale of adulterated drugs.
3
In the post-independence period as well, a number of legislations such as Essential Commodities Act of 1955, the Prevention of Food Adulteration Act of 1954 and the Standard of Weights and Measures Act of 1976 were enacted which favoured the consumer by imposing strict liability on the dishonest traders.
4
In spite of this rich jurisprudential history related to consumer welfare, a revolution was brought about by the enactment of The Consumer Protection Act of 1986 [Hereinafter referred to as the
‘
Act
’]
. One of the flaws in the earlier legislations related to consumer welfare was that in case of any wrongful act on the part of the trader or service provider, the consumer had to approach the standard courts of law which resulted in delayed justice. This lead to many consumers not coming forward to complain against the wrongful practices, which indirectly resulted in continued dishonest behavior on the part of the traders. The act intended to change this and provide justice in a manner that
is “less
formal, [and involves] less paper
work, less delay and less [expense]”
.
5
As a result of its cost-effectiveness and user-friendliness, the Consumer Protection Act received widespread acceptance, and the consumer preferred the mechanism under the act to enforce his rights. Since its inception, around 45,798 cases have been filed before the National Commission, and currently, only 8,884 cases are pending disposal.
6
This article discusses the procedure that a consumer has to follow to file a complaint against a trade or a service-provider before the consumer forums and the redressal procedure that shall be observed by these forums to ensure that justice is served.