Consumer Protection Rules 2021

Why in news?

• The Central Government has notified the Consumer Protection (Jurisdiction of the District Commission, the State Commission, and the National Commission) Rules, 2021 that aims to revise the pecuniary jurisdiction of all the three commissions, i.e., District, State, and National Commissions.
• The rule is notified under Consumer Protection Act, 2019.

Background:

• The Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for redressal of consumer disputes namely district commissions, state commissions and national commission.
• The Act also stipulates the pecuniary jurisdiction of each tier of consumer commission.

Revised pecuniary jurisdiction under the rules:

• The revised financial ambit of the customer complaints that can be examined by the District, State, and National commissions is as follows:
• The District Commission:
  • Shall have the jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed 50 lakh rupees (earlier limit: up to 1 crore).
• The State Commission:
  • Shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds 50 lakh but does not exceed two crore rupees (earlier limit: above 1 crore and up to 10 Crore).
• The National Commission:
  • Shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration, exceeds two crore rupees (earlier limit: above 10 crores).

Why new rule?

• There is an increased workload of District Commissions, which is the main cause of rising in pendency and delay in disposal of cases.
• The new rules reduce workload in District Commissions >> hence ensure speedy redressal to consumers as envisaged under the Act.

PRELIMS QUESTION

With reference to consumer protection in India, which of the following statements is/are correct?

1. Consumer Protection Act, 2019 stipulates consumer disputes redressal commissions at the district, state, and national levels.

2. The district consumer disputes redressal commission has the jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed 50 lakh rupees.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer