There have been lately regular complains against the merchants regarding the quality, quantity, purity, concentration and price of a product or service. The reason is simple- competition. This leads to the consumers suffering from various problems and sometimes being fooled as most of the consumers in today’s time use the online facility to buy products ( where only the picture and price range is given). There have been instances where the buyer or the consumer brought the item from online portal but was delivered a wrong item or the item was not as expected. The Consumer Protection Act, 1986 was enacted to provide better protection of the interests of the consumers and establishment of the consumer protection councils for the settlement of consumer disputes. But, due to increase in misleading advertisements, tele-marketing, E-commerce and the major problem of delay in disposal of cases, the Act of 1986 was amended in 2020 which includes provisions for mediation of disputes by Alternate Dispute Resolution mechanisms for speedy disposal of cases.
It is believed that the process of ADR will reduce cost & time and also will reduce some burden from dispute redressal forums. The Act applies to all goods and services. It covers all the sectors whether private, public or cooperative. For example; the IPC had already classified the act of “Adulteration of Drugs”, “Sale of Adulterated Drugs”, and “Sale of Drug as a Different Drug or Prescription” as offences and also provided some kind of punishment, the Prevention of Food Adulteration Act helped to strengthen the restrictions further when it was enacted in 1954.
Who is a Consumer?
“Consumer is King” according to the free market economy. The Act under section 2(d) clearly defines who can be termed as a consumer and under section 2(7), it defines who cannot be termed as the same. Any person who buys goods and services by paying a certain amount of money for consumption and not for resale or commercial purpose is a consumer. On the other hand, any individual buying goods and services for resale or for any commercial purpose is not a consumer. The basic rights of the consumers include : Right to be protected against marketing of goods and services which are hazardous to life and property, Right to consumer education, Right to be informed about the quality, quantity, standard and price of goods or services so as to protect the consumer against unfair trade practices etc.
Consumer Dispute Redressal System under Consumer Protection Act, 1986
The Act provides for a three-tire consumer grievance redressal mechanism with the District Forum at the base [Compensation claim not exceeding Rs. 20,00,000 (Section 11)], the State Commission at the middle tire [Compensation claim between Rs. 20,00,000 and Rs. 1 Crore (Section 17)] and the National Commission at the apex level [Compensation claim exceeds Rs. 1 Crore (Section 21)] where the State Commission and the National Commission acts as appellate bodies and the verdict passed by the National Commission can be challenged in the Supreme Court of India.
An appeal should be filed within 30 days from the date of the order along with the copy of the order and the reason for the filing which should be disposed off as expeditiously possible within a period of 90 days from its filing keeping in mind the fact that no adjournment should be granted without any reasonable cause and providing proper costs.
However, under the new provisions of 2019 Act include telecom, teleshopping, and modes of online transactions for consideration excluding free and personal services, fraud, misrepresentation OR failure to issue a bill or receipt, refusal to accept a good returned within 30days.
What is Mediation?
Section 2(25) of the Consumer Protection Act 2019 defines the term “mediation” as the process by which a mediator mediates consumer disputes.
Mediator
The mediator acts as a neutral third party and facilitates rather than directs the process. The mediator interacts with the parties and helps in finding the common ground to assist in drafting a settlement agreement which eventually helps the parties to reach a mutually agreeable settlement by identifying issues, exploring areas of agreement, and finding areas of compromise. The mediator will also allot some time to each party so that it can identify the circumstances which led to the dispute. The mediator will constantly try to press on the point that it is the duty and responsibility of the parties to make a decision and that he shall not impose any terms of settlement on the parties[1].
Appointment of Mediator
As far as the appointment of the mediator is concerned under the Act, the parties to the dispute will have to mutually decide the same (i.e. sole mediator). In case, the parties are unable to reach a consensus as to who shall act as the sole mediator, the concerned commission shall nominate/appoint the mediator, as it deems fit in its own knowledge.[2]
Qualifications of a Mediator
The qualifications and experience which is required for a mediator, the procedure, the manner of training, the fee payable to empanelled mediator, the terms and conditions, the code of conduct, 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 specified by regulations.[3]
Expenses & Costs
During the process of mediation, all expenses including the cost of administrative assistance shall be borne by the respective States. The fee of the mediator shall not exceed Rs. 2000/- per case but where the production of witness is concerned, each party will have to bear such expenses. According to the Consumer Dispute Redressal Commission Rules, there shall be no fee for the filing of cases under Consumer Protection Act, 2019 up to Rs. 5 Lakhs.[4]
Manner for Initiation of Mediation Proceedings
- A brief explanation of the nature of the dispute has to be provided, thereafter, the estimated value of any disputed amount and any relief or claim sought by the requesting party needs to be mentioned.
- The names and address (inclusive of e-mail address) and contact numbers of all the parties (inclusive of any legal or other representative involved) to the dispute has to be mentioned.
- Thereafter, a proposal for the appointment of a mediator, including suggested qualifications such as: language, skills or mediation experience on the subject matter has to be mentioned.
Notably, the party or parties initiating the proceedings or filing the request shall simultaneously have to send a copy of the request to all other parties, until and unless the request has been made jointly by all the parties. Such a request has to be accompanied by a fee amounting to Rs. 500[5].
CORRELATION OF SECTION 89 WITH CONSUMER DISPUTES ACT, 2019
Section 89 of the Code of Civil procedure was introduced with a purpose of amicable, peaceful and mutual settlement between parties without intervention of the court. Under the much-awaited Consumer Protection Act, 2019 there was a dire need to create new regulations in order to make mediation of consumer disputes more effective. Mediation is the need of the hour for the speedy and efficient disposal of consumer cases and its commendable looking at the way the government has a clear plan to employ mediators who can solve disputes, thereby, adding less burden on the judiciary[6].
CONCLUSION
Separate consumer redressal forums were introduced at different levels with the main objective of reducing burden on the civil courts and for the speedy disposal of cases. But, with the passage of time and advancement of technology, there was also an increase in the crime against consumers. The consumers were left dissatisfied with the increase in number of case filings and pending cases. This is how mediation came into the picture to solve the issues of the consumers at a much faster rate. It is the duty of the state government to establish a consumer mediation cell to each of the District Commissions and the State Commissions. The consumer instead of running from one court to another or from one consumer forum to another because of jurisdiction issues, he can simply with the other party ( if they want) appoint a mediator, then solve the issue and get the matter settled.
[1] Role of a mediator, available at http://egazette.nic.in/WriteReadData/2020/220548.pdf, visited on 9th July,2021 at 13:55hrs.
[2] Appointment of mediators, available at https://www.writinglaw.com/consumer-protection-act-2019/, visited on 9th July ,2021 at 13:45hrs.
[3] Section 75(2) of Consumer Protection Act, 2019.
[4] Cost and expenditure available at https://www.mondaq.com/india/dodd-frank-consumer-protection-act/975302/mediation-a-resolution-to-complaints-under-the-consumer-protection-act-2019, visited on 9th July, 2021 on 14:08hrs.
[5] Section 79 of the Consumer Protection Act, 2019.
[6]Abhishek Bagga &Smita Paliwal- Mediation : A Resolution to complains under the Consumer Protection Act, 2019,https://www.mondaq.com/india/dodd-frank-consumer-protection-act/975302/mediation-a-resolution-to-complaints-under-the-consumer-protection-act-2019, 9th July, 2021 at 14:34hrs.
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