The Supreme Court recently asked the central government to respond within three months about the possibility of setting up a permanent forum to handle consumer disputes.

• The directive came in response to a petition highlighting shortcomings in the enforcement of the Consumer Protection Act, 1986.

Key Directions & Observations

• Permanent Forum Setup: Forum to comprise permanent members: both administrative staff and presiding officers.
  • Consider allowing sitting Judges to head the forum.
  • The Union Government can increase the strength of Consumer Tribunals/Courts adequately.
• Appointment Rules & Tenure
  • Written exam + viva voce only for non-judicial members of State and District Commissions.
  • Exams to be conducted in consultation with State Service Commissions.
  • Tenure of office is fixed at five years (per the Court’s observations), but current appointments continue for 4 years only; judgment applies prospectively.
  • Qualification for President of District Commission restricted to serving or retired District Judges.
• Selection Committee Composition: More than 50% of the Selection Committee members should be from the Judiciary.
• Security of Tenure & Efficiency: Permanent appointments enhance efficiency and functionality of consumer justice delivery.
  • Security of tenure is essential for timely, qualitative consumer dispute resolution.
• Timeline for Centre
  • File an affidavit on the feasibility of permanent forums within 3 months.
  • The Centre must notify new Rules within 4 months, incorporating Court’s directions.

Need for Permanent Consumer Dispute Bodies

• Ensure Continuity and Stability: Temporary appointments cause frequent vacancies and interruptions. 
  • Permanent bodies with full-time presiding officers and staff ensure consistent functioning and sustained expertise.
• Address Systemic Backlogs and Delays: Consumer dispute forums face huge pendency of cases due to understaffing and poor infrastructure. 
  • Permanent bodies can be adequately staffed and equipped.
• Enhance Professionalism and Expertise: Permanent appointments attract qualified judges and officials. 
  • They develop deeper expertise in consumer laws. 
• Respond to Growing Complexity of Consumer Disputes: The digital economy and e-commerce are growing rapidly. 
  • Consumer disputes have become more complex, involving technology, data privacy, and cross-border issues. 
• Increase Consumer Confidence and Protection: A permanent institutional framework reinforces the constitutional mandate of protecting consumer rights. 
  • It ensures consumers get fair, quick, and quality adjudication. 
• Improve Administrative Efficiency: Permanent consumer bodies can invest in better infrastructure, digital tools, and training. 
  • This leads to smoother case management, reduced delays, and easier access for consumers.

Key Legislations for consumer rights Protection

• Consumer Protection Act, 1986: Established consumer councils and forums for dispute resolution.
  • Protected consumers against adulterated goods, misleading ads, and unfair trade practices. 
  • Granted six fundamental consumer rights: Right to Safety, Right to be Informed, Right to Choose, Right to be Heard, Right to Seek Redressal, and Right to Consumer Education.
• Consumer Protection Act, 2019: Replaced the 1986 Act to address modern challenges.
  • Expanded coverage to online commerce, product liability, and unfair contracts.
  • Established the Central Consumer Protection Authority (CCPA) to enforce consumer rights.
• Bureau of Indian Standards (BIS) Act, 2016:  Ensures product safety and quality through mandatory certification. 
  • Allows product recalls and penalties for non-compliance.
• Legal Metrology Act, 2009: Ensures accuracy in weights and measures used in trade.
  • Promotes fair practices and market transparency.
• Other Supporting Initiatives: The Department of Consumer Affairs issues guidelines against deceptive online practices, such as “dark patterns.”
• • Campaigns like “Jago Grahak Jago” raise consumer awareness nationwide.
  • Digital platforms like the E-Jagriti portal facilitate case filing and virtual hearings.

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