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Consumer Act takes new shape
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The recent amendments to the Consumer Protection Act might help plug many loopholes.
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THE 13-year-old Consumer Protection Act (CPA) has taken a new shape with the recent amendment made by the Consumer Protection Bill, 2002. The amended is meant to plug the loopholes in the Act and enlarge its ambit, in the light of the changing market situation.
We also see that each company is trying to woo consumers by offering prizes and gifts. But it is found that some of these schemes are unethical, and many don't even exist. But as per the amendment, the manufacturers are bound to publish the results of the prize and gift schemes in newspapers in which the original scheme was advertised.
With the object of taking consumer movement to rural areas, the amended CPA provides for establishment of District Consumer Protection Council in each district. While this is a good move, the experience with the existing State Consumer Protection Council makes one doubt its possible impact. The State Governments have seldom shown interest in making this council work.
The monetary limit prescribed for the three redressal agencies has been enhanced in the amendment. Now, consumers claiming compensation up to Rs. 20 lakh can approach the District Forum. The limit in case of State Commission has been raised from Rs. 20 lakh to one crore. Consumers, who claim compensation of more than this amount, will have to approach the National Commission.
The CPA was enacted to provide justice to common man with no cost. But some of these advantages are being withdrawn slowly. As per the amended Act, a consumer is required to pay a fee while filing the complaint.
A new procedure for admitting the complaint has been introduced. Now, a consumer will be informed whether his complaint is admitted or not within 21 days from the date of filing the complaint. It also states that once admitted, a complaint cannot be transferred to any other court or tribunal. Now, cases will be decided within three months and if it requires any analysis or testing, it would be decided within five months.
The greatest boon to consumers in the amended Act is empowering the forums and commissions to pass interim orders, which will be particularly relevant when it involves services such as water, electricity, and telephone.
Several disputes were earlier dragging on for years also because if a member of the forum retired, resigned, or died, the case had to be started afresh. But now, by virtue of the amendment, the other members can continue the proceeding from the stage at which it was last heard.
Henceforth, if a person is to pay any amount (following an order of the forum) wants to appeal, he will have to deposit 50 per cent of the amount or Rs. 25,000, whichever is less. The amended Act has put an end to the debate on the implementation powers of forum and commission. Accordingly, if an interim order is not complied with, the forum and commission may order the property of the person to be attached. In order to implement the orders, the Presidents of the forum and commission have been given the powers of Judicial Magistrate of the First Class.
Y.G. MURALIDHARAN
YGM_CIC@rediffmail.com
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