Consumer Dispute Redressal System

Outline:

The Consumer Dispute Redressal System in India is a statutory mechanism established to provide simple, speedy, and inexpensive justice to consumers for grievances arising from defective goods, deficient services, unfair trade practices, overcharging, or misleading advertisements. The system functions under the framework of the Consumer Protection Act, which replaced the earlier 1986 Act to strengthen consumer rights and modernize dispute resolution.

Objectives of the System

The primary objectives of the Consumer Dispute Redressal System are:

  • Protection of consumer rights such as the right to safety, information, choice, and redressal
  • Quick disposal of consumer disputes through specialized forums
  • Providing access to justice without complex court procedures
  • Ensuring accountability of manufacturers, sellers, and service providers

Three-Tier Redressal Structure

The system follows a three-tier quasi-judicial structure, based on the value of goods or services and compensation claimed:

  1. District Consumer Disputes Redressal Commission
    • Jurisdiction: Claims up to ₹1 crore
    • Established at the district level
    • Handles the majority of consumer complaints
  2. State Consumer Disputes Redressal Commission
    • Jurisdiction: Claims above ₹1 crore and up to ₹10 crore
    • Also hears appeals against District Commission orders
  3. National Consumer Disputes Redressal Commission
    • Jurisdiction: Claims exceeding ₹10 crore
    • Hears appeals against State Commission decisions

Each commission consists of a President (a judicial member) and other members with legal, administrative, or technical expertise.

Filing of Complaints

A consumer may file a complaint:

  • Personally or through an authorized representative
  • Against manufacturers, traders, service providers, or e-commerce platforms
  • In physical form or electronically through the e-Daakhil portal

No court fees are required; only nominal filing charges apply, making the system consumer-friendly.

Powers and Reliefs

Consumer Commissions are empowered to:

  • Order replacement or refund of defective goods
  • Award compensation for loss, injury, or mental harassment
  • Impose penalties for unfair trade practices
  • Direct discontinuation of misleading advertisements
  • Issue corrective advertisements at the cost of the offender

Amount of Fee Payable

District Consumer Commission
Value of Goods or Services Paid as ConsiderationFee Payable
Up to ₹5,00,000Nil
Above ₹5,00,000 and up to ₹10,00,000₹200
Above ₹10,00,000 and up to ₹20,00,000₹400
Above ₹20,00,000 and up to ₹50,00,000₹1,000
State Consumer Commission
value of Goods or Services Paid as ConsiderationFee Payable
Above ₹50,00,000 and up to ₹1,00,00,000₹2,000
Above ₹1,00,00,000 and up to ₹2,00,00,000₹2,500
National Consumer Commission
Value of Goods or Services Paid as ConsiderationFee Payable
Above ₹2,00,00,000 and up to ₹4,00,00,000₹3,000
Above ₹4,00,00,000 and up to ₹6,00,00,000₹4,000
Above ₹6,00,00,000 and up to ₹8,00,00,000₹5,000
Above ₹8,00,00,000 and up to ₹10,00,00,000₹6,000
Above ₹10,00,00,000₹7,500