CONSUMER PROTECTION LAW SEM 05 – SEM EXAM NOTES

MODULE 5 NOTES:
MODULE V: ENFORCEMENT OF CONSUMER RIGHTS
TOPICS: Enforcement of Consumer Rights – Agencies under Consumer Protection Act - Central
Consumer Protection Authority – Consumer Protection Councils - Consumer Commissions - Jurisdiction,
Functions and Powers- Procedure – Mediation, Enforcement of Orders – Class Actions.

TOPIC 1: ENFORCEMENT OF CONSUMER RIGHTS, AGENCIES UNDER CPA,

CCPA, CPC, CC- Jurisdiction, Functions and Powers- Procedure
Enforcement Authorities
An enforcement authority is an entity, typically a government agency or a regulatory body, that
has the legal power to ensure compliance with a specific law or set of rules. They have the
authority to investigate potential violations, take action against those who violate the law, and
impose penalties or other consequences.
There are three different enforcement authorities under the Consumer Protection Act, 2019:
1. Consumer Protection Council
2. Central Consumer Protection Agency
3. Consumer Commission

Consumer Protection Council (CPC)

Chapter II of CoPrA, 2019 deals with the Consumer Protection Council. It is an advisory body
rather than a body providing remedy.
We have a three-tier structure for the CPC:
1. Central Consumer Protection Council
2. State Consumer Protection Council
3. District Consumer Protection Council
Central Consumer Protection Council (CCPC)
Sections 3-5 of the Consumer Protection Act, 2019 deal with the CCPC.

SECTION 3(1) - CENTRAL CONSUMER PROTECTION COUNCIL

The Central Government shall, by notification, establish with effect from such date as it may
specify in that notification, the Central Consumer Protection Council to be known as the Central
Council.

SECTION 3(2) – COMPOSITION

The Central Council shall be an advisory council and consist of the following members, namely:
 (a) The Minister-in-charge of the Department of Consumer Affairs in the Central
Government, who shall be the Chairperson; and
 (b) Such number of other official or non-official members representing such interests as
may be prescribed.

SECTION 4 – PROCEDURE FOR MEETINGS

 (1) The Central Council shall meet as and when necessary, but at least one meeting of the
Council shall be held every year.
 (2) The Central Council shall meet at such time and place as the Chairperson may think
fit and shall observe such procedure in regard to the transaction of its business as may be
prescribed.

SECTION 5 – OBJECT
The objects of the Central Council shall be to render advice on the promotion and protection of
the consumers’ rights under this Act.
State Consumer Protection Council

SECTION 6(1) – STATE CONSUMER PROTECTION COUNCIL

Every State Government shall, by notification, establish with effect from such date as it may
specify in such notification, a State Consumer Protection Council for such State to be known as
the State Council.

SECTION 6(2) - COMPOSITION

The State Council shall be an advisory council and consist of the following members, namely:
 (a) The Minister-in-charge of Consumer Affairs in the State Government, who shall be
the Chairperson;
  (b) Such number of other official or non-official members representing such interests as
may be prescribed;
 (c) Such number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government.

SECTION 6(3), 6(4) – MEETING

 (3) The State Council shall meet as and when necessary, but not less than two meetings
shall be held every year.
 (4) The State Council shall meet at such time and place as the Chairperson may think fit
and shall observe such procedure in regard to the transaction of its business as may be
prescribed.

SECTION 7 – OBJECT
The objects of every State Council shall be to render advice on the promotion and protection of
consumer rights under this Act within the State.
District Consumer Protection Council

SECTION 8(1) – DISTRICT CONSUMER PROTECTION COUNCIL

The State Government shall, by notification, establish for every District with effect from such
date as it may specify in such notification, a District Consumer Protection Council to be known
as the District Council.

SECTION 8(2) – COMPOSITION

The District Council shall be an advisory council and consist of the following members, namely:
 (a) The Collector of the District, who shall be the Chairperson;
 (b) Such number of other official and non-official members representing such interests as
may be prescribed.

SECTION 8(3), 8(4) – MEETING

 (3) The District Council shall meet as and when necessary, but not less than two meetings
shall be held every year.
  (4) The District Council shall meet at such time and place within the district as the
Chairperson may think fit and shall observe such procedure in regard to the transaction of
its business as may be prescribed.

SECTION 9 – OBJECT
The objects of every District Council shall be to render advice on the promotion and protection
of consumer rights under this Act within the district.

Central Consumer Protection Agency

Chapter III of the Consumer Protection Act, 2019 from Section 10-27 deals with the Central
Consumer Protection Agency. It came into force on 24th July 2020.

SECTION 10(1), 10(3) – Establishment of CCPA

The Central Government shall, by notification, establish with effect from such date as it may
specify in that notification, a Central Consumer Protection Authority to be known as the Central
Authority to regulate matters relating to violation of rights of consumers, unfair trade practices,
and false or misleading advertisements which are prejudicial to the interests of public and
consumers and to promote, protect and enforce the rights of consumers as a class.
The headquarters of the Central Authority shall be in the National Capital Region of Delhi, and it
shall have regional and other offices in any other place in India as the Central Government may
decide.

SECTION 10(2) – COMPOSITION

The Central Authority shall consist of a Chief Commissioner and such number of other
Commissioners as may be prescribed, to be appointed by the Central Government to exercise the
powers and discharge the functions under this Act.

SECTION 11 – QUALIFICATION ETC. OF COMMISSIONERS

The Central Government may, by notification, make rules to provide for the qualifications for
appointment, method of recruitment, procedure for appointment, term of office, salaries and
allowances, resignation, removal, and other terms and conditions of the service of the Chief
Commissioner and Commissioners of the Central Authority.
SECTION 14 – PROCEDURE OF CCPA
1. The Central Authority shall regulate the procedure for transaction of its business and
allocation of its business amongst the Chief Commissioner and Commissioners as may be
specified by regulations.
2. The Chief Commissioner shall have the powers of general superintendence, direction,
and control in respect of all administrative matters of the Central Authority:
o Provided that the Chief Commissioner may delegate such of his powers relating
to administrative matters of the Central Authority, as he may think fit, to any
Commissioner.

SECTION 15 – INVESTIGATION WING

1. The Central Authority shall have an Investigation Wing headed by a Director-General for
the purpose of conducting inquiry or investigation under this Act as may be directed by
the Central Authority.
2. The Central Government may appoint a Director-General and such number of Additional
Director-General, Director, Joint Director, Deputy Director, and Assistant Director, from
amongst persons who have experience in investigation and possess such qualifications, in
such manner, as may be prescribed.
3. Every Additional Director-General, Director, Joint Director, Deputy Director, and
Assistant Director shall exercise his powers, and discharge his functions, subject to the
general control, supervision, and direction of the Director-General.
4. The Director-General may delegate all or any of his powers to the Additional Director-
General or Director, Joint Director, Deputy Director, or Assistant Director while
conducting inquiries or investigations under this Act.
5. The inquiries or the investigations made by the Director-General shall be submitted to the
Central Authority in such form, in such manner, and within such time, as may be
specified by regulations.

SECTION 16 – POWER OF DISTRICT COLLECTOR

The District Collector has the power to conduct inquiries into or investigate the violation of
consumer rights, false and misleading advertisements, and unfair trade practices and submit
reports to the CCPA.

SECTION 17 – COMPLAINTS
A complaint relating to violation of consumer rights or unfair trade practices or false or
misleading advertisements which are prejudicial to the interests of consumers as a class, may be
forwarded either in writing or in electronic mode, to any one of the authorities, namely, the
District Collector, the Commissioner of the regional office, or the Central Authority.

SECTION 18(1) - FUNCTIONS OF CCPA

(a) Protect, promote and enforce the rights of consumers as a class, and prevent violation of
consumers' rights under this Act;
(b) Prevent unfair trade practices and ensure that no person engages himself in unfair trade
practices;
(c) Ensure that no false or misleading advertisement is made of any goods or services which
contravenes the provisions of this Act or the rules or regulations made thereunder;
(d) Ensure that no person takes part in the publication of any advertisement which is false or
misleading.

SECTION 18(2) – POWERS OF CCPA

(a) Inquire or cause an inquiry or investigation to be made into violations of consumer rights or
unfair trade practices, either suo motu or on a complaint received or on the directions from the
Central Government;
(b) File complaints before the District Commission, the State Commission, or the National
Commission;
(c) Intervene in any proceedings before the District Commission or the State Commission or the
National Commission;
(d) Review the matters relating to, and the factors inhibiting enjoyment of, consumer rights,
including safeguards provided for the protection of consumers under any other law for the time
being in force and recommend appropriate remedial measures for their effective implementation;
(e) Recommend adoption of international covenants and best international practices on consumer
rights to ensure effective enforcement of consumer rights;
(f) Undertake and promote research in the field of consumer rights;
(g) Spread and promote awareness on consumer rights;
(h) Encourage non-Governmental organizations and other institutions working in the field of
consumer rights to cooperate and work with consumer protection agencies;
(i) Mandate the use of unique and universal goods identifiers in such goods, as may be necessary,
to prevent unfair trade practices and to protect consumers’ interest;
(j) Issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or
services;
(k) Advise the Ministries and Departments of the Central and State Governments on consumer
welfare measures;
(l) Issue necessary guidelines to prevent unfair trade practices and protect consumers’ interest.
SECTION 19 – Power of Central Authority to Refer Matter for Investigation or to Other
Regulator

SECTION 20 – Power of Central Authority to:

(a) Recalling of goods or withdrawal of services which are dangerous, hazardous, or unsafe;
(b) Reimbursement of the prices of goods or services so recalled to purchasers of such goods or
services;
(c) Discontinuation of practices which are unfair and prejudicial to consumer interest.
Provided that the Central Authority shall give the person an opportunity of being heard before
passing an order under this section.

SECTION 21 - Power of Central Authority to Issue Directions and Penalties Against False
or Misleading Advertisements
1. Where the Central Authority is satisfied after investigation that any advertisement is false
or misleading and is prejudicial to the interest of any consumer or is in contravention of
consumer rights, it may, by order:
o Issue directions to the concerned trader or manufacturer or endorser or advertiser
or publisher to discontinue such advertisement or to modify the same in such
manner and within such time as may be specified in that order.
2. If the Central Authority is of the opinion that it is necessary to impose a penalty in respect
of such false or misleading advertisement, by a manufacturer or an endorser, it may, by
order, impose on manufacturer or endorser a penalty which may extend to ten lakh
rupees.
Provided that the Central Authority may, for every subsequent contravention by a
manufacturer or endorser, impose a penalty, which may extend to fifty lakh rupees.
3. Where the Central Authority deems it necessary, it may, by order, prohibit the endorser of
a false or misleading advertisement from making endorsement of any product or service
for a period which may extend to one year.
Provided that the Central Authority may, for every subsequent contravention, prohibit
such endorser from making endorsement in respect of any product or service for a period
which may extend to three years.
4. Where the Central Authority is satisfied after investigation that any person is found to
publish, or is a party to the publication of, a misleading advertisement, it may impose on
such person a penalty which may extend to ten lakh rupees.
 5. No endorser shall be liable to a penalty under sub-sections (2) and (3) if he has exercised
due diligence to verify the veracity of the claims made in the advertisement regarding the
product or service being endorsed by him.
6. No person shall be liable to such penalty if he proves that he had published or arranged
for the publication of such advertisement in the ordinary course of his business:
Provided that no such defence shall be available to such person if he had previous
knowledge of the order passed by the Central Authority for withdrawal or modification of
such advertisement.
7. While determining the penalty under this section, regard shall be had to the following:
o (a) The population and the area impacted or affected by such offence;
o (b) The frequency and duration of such offence;
o (c) The vulnerability of the class of persons likely to be adversely affected by
such offence;
o (d) The gross revenue from the sales effected by virtue of such offence.
8. The Central Authority shall give the person an opportunity of being heard before an order
under this section is passed.

SECTION 24: Appeals

A person aggrieved by any order passed by the Central Authority may file an appeal to the
National Commission within a period of thirty days from the date of receipt of such order.

District Consumer Disputes Redressal Commission (DCC)

Chapter IV deals with Consumer Commissions from Section 28 to Section 73. It has a three-
tier mechanism for providing remedies:
 a) District Consumer Commission
 b) State Consumer Commission
 c) National Consumer Commission

District Consumer Commission

Section 28 - Establishment
  The State Government shall, by notification, establish a District Consumer Disputes
Redressal Commission, to be known as the District Commission, in each district of the
State.
 Provided that the State Government may, if it deems fit, establish more than one District
Commission in a district.

Composition
 Each District Commission shall consist of:
o (a) A President; and
o (b) Not less than two and not more than such number of members as may be
prescribed, in consultation with the Central Government.

Section 29 - Qualification
 The Central Government may, by notification, make rules to provide for:
o Qualifications, method of recruitment, procedure for appointment, term of office,
resignation, and removal of the President and members of the District
Commission.

Section 34 - Jurisdiction of District Commission

Two types of Jurisdiction
 Pecuniary Jurisdiction:
o The District Commission shall have jurisdiction to entertain complaints where
the value of the goods or services paid as consideration does not exceed one crore
rupees (modified by the Government, currently ₹50 lakh).
o Provided that where the Central Government deems it necessary, it may
prescribe such other value as it deems fit.
 Territorial Jurisdiction:
o A complaint shall be instituted in a District Commission within the local limits of
whose jurisdiction:
 (a) The opposite party or each of the opposite parties, where there are
more than one, at the time of the institution of the complaint, ordinarily
resides or carries on business or has a branch office or personally works
for gain; or
  (b) Any of the opposite parties, where there are more than one, at the time
of the institution of the complaint, actually and voluntarily resides, or
carries on business or has a branch office, or personally works for gain,
provided that in such case the permission of the District Commission is
given; or
 (c) The cause of action, wholly or in part, arises; or
 (d) The complainant resides or personally works for gain.
o The District Commission shall ordinarily function in the district headquarters
and may perform its functions at such other place in the district, as the State
Government may, in consultation with the State Commission, notify in the
Official Gazette from time to time.

Section 35 - Filing of Complaints

A complaint, in relation to any goods sold or delivered or agreed to be sold or delivered or any
service provided or agreed to be provided, may be filed with a District Commission by:
 (a) The consumer:
o (i) To whom such goods are sold or delivered or agreed to be sold or delivered or
such service is provided or agreed to be provided; or
o (ii) Who alleges unfair trade practice in respect of such goods or service;
 (b) Any recognised consumer association, whether the consumer to whom such goods
are sold or delivered or agreed to be sold or delivered or such service is provided or
agreed to be provided, or who alleges unfair trade practice in respect of such goods or
service, is a member of such association or not;
 (c) One or more consumers, where there are numerous consumers having the same
interest, with the permission of the District Commission, on behalf of, or for the benefit
of, all consumers so interested; or
 (d) The Central Government, the Central Authority, or the State Government, as the
case may be.
o Provided that the complaint under this sub-section may be filed electronically in
such manner as may be prescribed.
Explanation:
For the purposes of this sub-section, “recognised consumer association” means any voluntary
consumer association registered under any law for the time being in force.
Section 36 - Admission/Rejection of Complaints
 On receipt of a complaint made under Section 35, the District Commission may, by
order, admit the complaint for being proceeded with or reject the same.
 Provided that a complaint shall not be rejected under this section unless an opportunity
of being heard has been given to the complainant.
 Provided further that the admissibility of the complaint shall ordinarily be decided
within twenty-one days from the date on which the complaint was filed.
 Where the District Commission does not decide the issue of admissibility of the
complaint within the period so specified, it shall be deemed to have been admitted.

Section 37 - Reference to Mediation

 At the first hearing of the complaint after its admission, or at any later stage, if it appears
to the District Commission that there exists elements of a settlement which may be
acceptable to the parties, except in such cases as may be prescribed, it may direct the
parties to give in writing, within five days, consent to have their dispute settled by
mediation in accordance with the provisions of Chapter V.
 Where the parties agree for settlement by mediation and give their consent in writing, the
District Commission shall, within five days of receipt of such consent, refer the matter
for mediation, and in such case, the provisions of Chapter V, relating to mediation, shall
apply.

Section 38 - Procedure After Admission

 The District Commission shall refer a copy of the admitted complaint, within twenty-
one days from the date of its admission, to the opposite party mentioned in the
complaint, directing him to give his version of the case within a period of thirty days or
such extended period not exceeding fifteen days as may be granted by it.
 If the complaint alleges a defect in the goods which cannot be determined without proper
analysis or test of the goods, the District Commission shall obtain a sample of the goods
from the complainant, seal it and authenticate it in the manner as may be prescribed and
refer the sample so sealed to the appropriate laboratory along with a direction that such
laboratory make an analysis or test, whichever may be necessary, with a view to finding
out whether such goods suffer from any defect alleged in the complaint or from any other
defect and to report its findings thereon to the District Commission within a period of
forty-five days of the receipt of the reference or within such extended period as may be
granted by it.
Section 39 - Final Hearing and Orders
 Where the District Commission is satisfied that the goods complained against suffer
from any of the defects specified in the complaint or that any of the allegations contained
in the complaint about the services or any unfair trade practices, or claims for
compensation under product liability are proved, it shall issue an order to the opposite
party directing him to do one or more of the following, namely:
o (a) To remove the defect pointed out by the appropriate laboratory from the
goods in question;
o (b) To replace the goods with new goods of similar description which shall be
free from any defect;
o (c) To return to the complainant the price, or, as the case may be, the charges
paid by the complainant along with such interest on such price or charges as may
be decided;
o (d) To pay such amount as may be awarded by it as compensation to the
consumer for any loss or injury suffered by the consumer due to the negligence of
the opposite party:
 Provided that the District Commission shall have the power to grant
punitive damages in such circumstances as it deems fit;
o (e) To pay such amount as may be awarded by it as compensation in a product
liability action under Chapter VI;
o (f) To remove the defects in goods or deficiencies in the services in question;
o (g) To discontinue the unfair trade practice or restrictive trade practice and not
to repeat them;
o (h) Not to offer the hazardous or unsafe goods for sale;
o (i) To withdraw the hazardous goods from being offered for sale;
o (j) To cease manufacture of hazardous goods and to desist from offering
services which are hazardous in nature;
o (k) To pay such sum as may be determined by it, if it is of the opinion that loss or
injury has been suffered by a large number of consumers who are not identifiable
conveniently:
 Provided that the minimum amount of sum so payable shall not be less
than twenty-five per cent. of the value of such defective goods sold or
service provided, as the case may be, to such consumers;
 o (l) To issue corrective advertisement to neutralize the effect of misleading
advertisement at the cost of the opposite party responsible for issuing such
misleading advertisement;
o (m) To provide for adequate costs to parties; and
o (n) To cease and desist from issuing any misleading advertisement.

Section 41 - Appeals
 Any person aggrieved by an order made by the District Commission may prefer an
appeal against such order to the State Commission on the grounds of facts or law within
a period of forty-five days from the date of the order, in such form and manner, as may
be prescribed:
o Provided that the State Commission may entertain an appeal after the expiry of
the said period of forty-five days, if it is satisfied that there was sufficient cause
for not filing it within that period:
o Provided further that no appeal by a person, who is required to pay any amount
in terms of an order of the District Commission, shall be entertained by the State
Commission unless the appellant has deposited fifty per cent. of that amount in
the manner as may be prescribed.
State Commission
Section 42 – Establishment
1. The State Government shall, by notification, establish a State Consumer Disputes
Redressal Commission, to be known as the State Commission, in the State.
2. The State Commission shall ordinarily function at the State capital and perform its
functions at such other places as the State Government may, in consultation with the State
Commission, notify in the Official Gazette:
o Provided: The State Government may, by notification, establish regional benches
of the State Commission at such places as it deems fit.
Composition
Each State Commission shall consist of:
 (a) A President; and
 (b) Not less than four or not more than such number of members as may be prescribed in
consultation with the Central Government.
Jurisdiction – Section 47
The State Commission has 5 types of jurisdiction:
1. Appellate Jurisdiction
o Entertain appeals against the orders of any District Commission within the State.
2. Territorial Jurisdiction
A complaint shall be instituted in a State Commission within the limits of whose jurisdiction:
o (a) The opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or carries on
business or has a branch office or personally works for gain; or
o (b) Any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on
business or has a branch office or personally works for gain, provided in such
case, the permission of the State Commission is given; or
o (c) The cause of action, wholly or in part, arises; or
o (d) The complainant resides or personally works for gain.
3. Pecuniary Jurisdiction
o Complaints where the value of the goods or services paid as consideration is
between ₹50 lakhs and ₹2 crores.
4. Jurisdiction to Call for Records
o To call for the records and pass appropriate orders in any consumer dispute which
is pending before or has been decided by any District Commission within the
State, where it appears to the State Commission that such District Commission
has exercised a jurisdiction not vested in it by law, or has failed to exercise a
jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with
material irregularity.
5. Jurisdiction in Case of Unfair Contracts
o Complaints against unfair contracts, where the value of goods or services paid as
consideration does not exceed ten crore rupees.
Powers
 Administrative Control – Section 70
 Power to Review – Section 50
 Power to Regulate Its Own Procedure – Section 49
 Power of a Civil Court – Section 39
  Appeal to National Commission – Section 51
o Within a period of 30 days from the date of the order.
Section 35-9 – Applicable to the State Commission as well.
National Consumer Disputes Redressal Commission
Section 53 – Establishment
1. The Central Government shall, by notification, establish a National Consumer Disputes
Redressal Commission, to be known as the National Commission.
2. The National Commission shall ordinarily function at the National Capital Region and
perform its functions at such other places as the Central Government may, in consultation
with the National Commission, notify in the Official Gazette:
Provided that the Central Government may, by notification, establish regional benches of the
National Commission at such places, as it deems fit.
Section 54 – Composition
Each National Commission shall consist of:
 (a) A President; and
 (b) Not less than four and not more than such number of members as may be prescribed.
Jurisdiction – Section 58
The National Commission has 4 types of jurisdiction:
1. Pecuniary Jurisdiction
o Above ₹2 crores
2. Unfair Contract
o Complaints against unfair contracts, where the value of goods or services paid as
consideration exceeds ten crore rupees.
3. Appellate Jurisdiction
o Appeals against the orders of any State Commission.
o Appeals against the orders of the Central Authority.
4. Power to Call for Records
o The National Commission can call for the records and pass appropriate orders in
any consumer dispute which is pending before or has been decided by any State
Commission, where it appears to the National Commission that such State
Commission has exercised a jurisdiction not vested in it by law, or has failed to
 exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction
illegally or with material irregularity.
Procedure of National Commission – Section 59
 The procedure is the same as Section 35-39.
Section 35 – Complaint
A complaint, in relation to any goods sold or delivered or agreed to be sold or delivered, or any
service provided or agreed to be provided, may be filed with a District Commission by:
 (a) The consumer,
o (i) To whom such goods are sold or delivered, or agreed to be sold or delivered, or
such service is provided or agreed to be provided; or
o (ii) Who alleges unfair trade practice in respect of such goods or service.
 (b) Any recognized consumer association, whether the consumer to whom such goods are
sold or delivered, or agreed to be sold or delivered, or such service is provided or agreed
to be provided, or who alleges unfair trade practice in respect of such goods or service, is
a member of such association or not.
 (c) One or more consumers, where there are numerous consumers having the same
interest, with the permission of the District Commission, on behalf of, or for the benefit
of, all consumers so interested; or
 (d) The Central Government, the Central Authority, or the State Government, as the case
may be.
Explanation: For the purposes of this sub-section, “recognized consumer association” means
any voluntary consumer association registered under any law for the time being in force.
Section 35(3) – Fee and Payment
Every complaint filed under sub-section (1) shall be accompanied by such fee and payable in
such manner, including electronic form, as may be prescribed.

Procedure of DCC (District Consumer Commission)

1. Admission/Rejection of Complaint – Section 36
On receipt of a complaint made under Section 35, the District Commission may, by order, admit
the complaint for being proceeded with or reject the same.
Provided that a complaint shall not be rejected under this section unless an opportunity of
being heard has been given to the complainant.
Provided further that the admissibility of the complaint shall ordinarily be decided within
twenty-one days from the date on which the complaint was filed.
Where the District Commission does not decide the issue of admissibility of the complaint within
the period so specified, it shall be deemed to have been admitted.
2. Reference to Mediation – Section 37
At the first hearing of the complaint after its admission, or at any later stage, if it appears to the
District Commission that there exist elements of a settlement which may be acceptable to the
parties, except in such cases as may be prescribed, it may direct the parties to give in writing,
within five days, consent to have their dispute settled by mediation in accordance with the
provisions of Chapter V.
Where the parties agree for settlement by mediation and give their consent in writing, the District
Commission shall, within five days of receipt of such consent, refer the matter for mediation, and
in such case, the provisions of Chapter V, relating to mediation, shall apply.
3. On Admission of Complaint – Section 38
The District Commission shall refer a copy of the admitted complaint, within twenty-one days
from the date of its admission, to the opposite party mentioned in the complaint, directing them
to give their version of the case within a period of thirty days or such extended period not
exceeding fifteen days.
If the complaint alleges a defect in the goods which cannot be determined without proper
analysis or test of the goods, the Commission shall obtain a sample of the goods from the
complainant, seal it, and authenticate it in the manner as may be prescribed.
The sample shall be referred to an appropriate laboratory along with a direction that the
laboratory make an analysis or test, whichever may be necessary, with a view to finding out
whether such goods suffer from any defect alleged in the complaint or from any other defect and
to report its findings thereon to the District Commission within a period of forty-five days of the
receipt of the reference or within such extended period as may be granted by it.
4. Evidence
Both the complainant and the respondent can submit their evidence as part of the proceedings.
5. Final Hearing and Orders – Section 39
Where the District Commission is satisfied that the goods complained against suffer from any of
the defects specified in the complaint or that any of the allegations contained in the complaint
about the services or any unfair trade practices, or claims for compensation under product
liability are proved, it shall issue an order to the opposite party directing them to do one or more
of the following:
 (a) To remove the defect pointed out by the appropriate laboratory from the goods in
question;
  (b) To replace the goods with new goods of similar description which shall be free from
any defect;
 (c) To return to the complainant the price, or, as the case may be, the charges paid by the
complainant along with such interest on such price or charges as may be decided;
 (d) To pay such amount as may be awarded by it as compensation to the consumer for
any loss or injury suffered by the consumer due to the negligence of the opposite party;
 (e) To pay such amount as may be awarded by it as compensation in a product liability
action under Chapter VI;
 (f) To remove the defects in goods or deficiencies in the services in question;
 (g) To discontinue the unfair trade practice or restrictive trade practice and not to repeat
them;
 (h) Not to offer the hazardous or unsafe goods for sale;
 (i) To withdraw the hazardous goods from being offered for sale;
 (j) To cease manufacture of hazardous goods and to desist from offering services which
are hazardous in nature;
 (k) To pay such sum as may be determined by it, if it is of the opinion that loss or injury
has been suffered by a large number of consumers who are not identifiable conveniently.
Provided that the minimum amount of sum so payable shall not be less than twenty-five
per cent of the value of such defective goods sold or service provided, as the case may be,
to such consumers;
 (l) To issue corrective advertisement to neutralize the effect of misleading advertisement
at the cost of the opposite party responsible for issuing such misleading advertisement;
 (m) To provide for adequate costs to parties;
 (n) To cease and desist from issuing any misleading advertisement.
6. Powers of the District Commission
 Power to Review – Section 60
 Power to Set Aside Ex Parte Orders – Section 61
 Power to Transfer Cases – Section 62
 Power to Take Expert Assistance – Section 66
 Power of Administrative Control – Section 70
7. Appeal Against Order of National Commission – Section 67
May prefer an appeal against such order to the Supreme Court within a period of thirty days from
the date of the order.
8. Limitation Period – Section 69
 (1) The District Commission, the State Commission, or the National Commission shall
not admit a complaint unless it is filed within two years from the date on which the cause
of action has arisen.
 (2) Notwithstanding anything contained in sub-section (1), a complaint may be
entertained after the period specified in sub-section (1), if the complainant satisfies the
District Commission, the State Commission, or the National Commission, as the case
may be, that he had sufficient cause for not filing the complaint within such period:
o Provided that no such complaint shall be entertained unless the District
Commission, State Commission, or National Commission records its reasons for
condoning such delay.
9. Enforcement of Order – Section 71
Every order made by a District Commission, State Commission, or the National Commission
shall be enforced by it in the same manner as if it were a decree made by a Court in a suit before
it and the provisions of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 (5
of 1908) shall, as far as may be, apply, subject to the modification that every reference therein to
the decree shall be construed as a reference to the order made under this Act.
10. Penalty for Non-Compliance of Order – Section 72
 Minimum Imprisonment: 1 month
 Maximum Imprisonment: 3 years
 Minimum Fine: ₹25,000
 Maximum Fine: ₹1,00,000
11. Appeals Against Enforcement Orders – Section 73
This structure spaces out the sections appropriately, with added focus on the relevant details and
subsections for clarity.
TOPIC 2: MEDIATION, ENFORCEMENT OF ORDERS, CLASS ACTIONS
MEDIATION
74. (1) The State Government shall establish, by notification, a consumer mediation cell to be
attached to each of the District Commissions and the State Commissions of that State.
(2) The Central Government shall establish, by notification, a consumer mediation cell to be
attached to the National Commission and each of the regional Benches.
(4) A consumer mediation cell shall consist of such persons as may be prescribed.
(5) Every consumer mediation cell shall maintain:
 (a) A list of empanelled mediators;
 (b) A list of cases handled by the cell;
 (c) Record of proceedings; and
 (d) Any other information as may be specified by regulations.
(6) Every consumer mediation cell shall submit a quarterly report to the District Commission,
State Commission, or the National Commission to which it is attached, in the manner specified
by regulations.

75. (1) For the purpose of mediation, the National Commission, the State Commission, or the
District Commission, as the case may be, shall prepare a panel of the mediators to be maintained
by the consumer mediation cell attached to it, on the recommendation of a selection committee
consisting of the President and a member of that Commission.
(2) The qualifications and experience required for empanelment as mediator, the procedure for
empanelment, the manner of training empanelled mediators, the fee payable to empanelled
mediator, the terms and conditions for empanelment, the code of conduct for empanelled
mediators, the grounds on which, and the manner in which, empanelled mediators shall be
removed or empanelment shall be cancelled, and other matters relating thereto, shall be such as
may be specified by regulations.
(4) The panel of mediators prepared under sub-section (1) shall be valid for a period of five
years, and the empanelled mediators shall be eligible to be considered for re-empanelment for
another term, subject to such conditions as may be specified by regulations.

76. The District Commission, the State Commission, or the National Commission shall, while
nominating any person from the panel of mediators referred to in Section 75, consider his
suitability for resolving the consumer dispute involved.

77. It shall be the duty of the mediator to disclose:

 (a) Any personal, professional, or financial interest in the outcome of the consumer
dispute;
 (b) The circumstances which may give rise to a justifiable doubt as to his independence
or impartiality; and
 (c) Such other facts as may be specified by regulations.
78. Where the District Commission or the State Commission or the National Commission, as the
case may be, is satisfied, on the information furnished by the mediator or on the information
received from any other person including parties to the complaint and after hearing the mediator,
it shall replace such mediator by another mediator.
79. (1) The mediation shall be held in the consumer mediation cell attached to the District
Commission, the State Commission, or the National Commission, as the case may be.
(2) Where a consumer dispute is referred for mediation by the District Commission or the State
Commission or the National Commission, as the case may be, the mediator nominated by such
Commission shall have regard to the rights and obligations of the parties, the usages of trade, if
any, the circumstances giving rise to the consumer dispute, and such other relevant factors, as he
may deem necessary, and shall be guided by the principles of natural justice while carrying out
mediation.
(3) The mediator so nominated shall conduct mediation within such time and in such manner as
may be specified by regulations.

80. (1) Pursuant to mediation, if an agreement is reached between the parties with respect to all
of the issues involved in the consumer dispute or with respect to only some of the issues, the
terms of such agreement shall be reduced to writing accordingly, and signed by the parties to
such dispute or their authorised representatives.
(2) The mediator shall prepare a settlement report of the settlement and forward the signed
agreement along with such report to the concerned Commission.
(3) Where no agreement is reached between the parties within the specified time or the mediator
is of the opinion that settlement is not possible, he shall prepare his report accordingly and
submit the same to the concerned Commission.

81. (1) The District Commission or the State Commission or the National Commission, as the
case may be, shall, within seven days of the receipt of the settlement report, pass suitable order
recording such settlement of the consumer dispute and dispose of the matter accordingly.
(2) Where the consumer dispute is settled only in part, the District Commission or the State
Commission or the National Commission, as the case may be, shall record settlement of the
issues which have been so settled and continue to hear other issues involved in such consumer
dispute.
(3) Where the consumer dispute could not be settled by mediation, the District Commission or
the State Commission or the National Commission, as the case may be, shall continue to hear all
the issues involved in such consumer dispute.
Class Action
A class/collective action is a lawsuit in which a single person or small group of individuals
represent the interests of a larger group before the court. Class action lawsuits find their basis
under the Civil Procedure Code (“CPC”) under Order 1 Rule 8 and are statutorily recognised
under various legislations, including the Companies Act, 2013, the Competition Act, 2002, and
the Consumer Protection Act, 1986 (“CPA”) and now the Consumer Protection Act 2019 (“CPA
2019”).
Section 35(1)(c) of the CPA 2019 is in effect (Section 12(1)(c) of the CPA, 1986) pertaining to
filing a “complaint” by “one or more consumers, where there are numerous consumers having
the same interest” with the permission of the District Commission. Consequently, any
jurisprudence pertaining to this category of consumer matters under the CPA will continue to be
binding and have precedentiary value.
The essentials of a Class Action and its maintainability under Section 12(1)(c) of the CPA,
1986 were decided by the National Consumer Disputes Redressal Commission (“NCDRC”),
New Delhi in the case Ambrish Kumar Shukla v. Ferrous Infrastructure Pvt. Ltd.
 Due Care and Caution: Exercise caution while granting permission for class action
suits.
 Fulfilling Conditions: Ensure the complaint meets all requirements of Section 12(1)(c)
of the Consumer Protection Act and Order 1 Rule 8 of the Code of Civil Procedure.
 Adequate Notice: Provide individual or public notice to affected consumers, detailing
the complaint’s subject matter, affected class, common grievance, alleged deficiency, and
sought relief.
 Hearing the Opposite Party: Hear the opposing party’s perspective before granting
permission.