Class 12 - Business Studies - CH 12 Consumer Protection - Redressal Agencies (#cbsenotes) (#Class12BusinesStudies)

Redressal Agencies

Consumer Protection 

Class 12 - Business Studies 


Question: What are different redressal agencies available for consumer grievances under Consumer Protection Act, 1986?


Answer: For the redressal of consumer grievances the act provides a three–tier machinery as:

① District Forum
② State Commission
③ National Commission

① District Forum
District forum is set up in each district by the state concerned. The important features are:

⒜ It consists of a President and two members, one of whom should be a woman, duly appointed by State Government.



⒝ It can receive consumer complaints of not more than Rs. 20 lakhs value.

⒞ On receiving the complaint, the district forum shall refer the complaint to the opposite party concerned and send the sample of goods for testing in a laboratory.

⒟ The district forum after being satisfied that goods are defective or there is some unfair trade practice, it can issue an order to opposite party directing him to either replace or return the price or pay compensation. In case the aggrieved party is not satisfied with the order of district forum. He/She can appeal before state forum within 30 days of passing an order.


② State Commission
It is set up in each state by the govt. concerned. The salient features are:

⒜ Each commission consists of a president and it least 2 members appointed by state Govt.

⒝ Complaints of at least Rs. 20 lakhs but not more than 1 crore can be filed with the state commission.

⒞ On receiving the complaint, the state commission can also refer the complaint to opposite party and send the goods for testing in a laboratory.

⒟ The state commission after being satisfied can order to opposite party to either replace or repay or pay compensation.

In case the aggrieved party is not satisfied, they can appeal before the national commission within 30 days of passing an order.


③ National Commission
It is a set up by Central Government. The provisions of the act are:

⒜ It consists of a President and at least 4 members appointed by Central Govt.

⒝ All complaints are pertaining to goods and services of value more than Rs. 1 crore can be filed with the national commission.

⒞ On receiving the complaint, the national commission can also refer it to opposite party and send goods for testing.

⒟ The National Commission has the power to issue orders for replacement or removal and to pay the compensation for the loss.