Question

How are consumer grievances redressed by the three-tier machinery under Consumer Protection Act, 1986? Explain.

Answer 1

Under the Consumer Protection Act, a three-tier machinery comprising the District Forum, State Commission and National Commission has been formed with the basic objective of consumer redressal.

The brief explanation of the three-tier machinery:

• District Forum: It is set up at the district level by the concerned state government. A complaint can be filed in the district forum if the value of goods, including the compensation claimed, is less than Rs 20 lakh.
• State Commission: It is set up at the state level by the state government. The complaint can be filed in the district forum if the value of goods, including the compensation claimed, is between Rs 20 lakh and Rs 1 crore.
• National Commission: It is set up by the Central Government. A complaint can be filed in the district forum if the value of goods, including the compensation claimed, is more than Rs 1 crore.