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NCDRC: Structure, Powers, Functions, and Significance

PWOnlyIAS January 04, 2024 03:17 4897 0

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The NCDRC OR National Consumer Disputes Redressal Commission is a quasi-judicial commission set up under the Consumer Protection Act, 1986.

NCDRC: Structure, Powers, Functions, and Significance

Provision

The NCDRC or National Consumer Disputes Redressal Commission is a quasi-judicial commission set up under the Consumer Protection Act, 1986.

About NCDRC: Its Full Form, Structure and Composition

  • NCDRC Full Form: National Consumer Disputes Redressal Commission
  • Members: The NCDRC is headed by a chairperson and comprises seven other members. The chairperson is headed by a retired or a sitting judge of the Supreme Court.
  • Mandate: The main mandate of National Consumer Disputes Redressal Commission is to provide speedy, economical and summary resolution of consumer complaints or disputes.

NCDRC: Its Powers and Functions

  • Entertain Consumer Grievances: According to the Consumer Protection Act 1986, NCDRC can entertain consumer complaints that are valued over Rs. 1 Crore. 
    • After the amendment of the 1986 Act, the NCDRC will entertain complaints valued above Rs. 10 Crore.
  • Exercise Appellate Jurisdiction: NCDRC can exercise appellate as well as revisional jurisdictions from the orders of the State Consumer Disputes Redressal Commissions and the District Fora.
    • Individuals aggrieved by an order of the NCDRC can file an appeal against the order in the Supreme Court of India within a period of 30 days.
  • Audit State Commissions: The National Consumer Disputes Redressal Commission has powers to ask state commissions to file periodical returns regarding the institution, disposal and pendency of cases.
  • Issue Instructions: The NCDRC can issue instructions regarding adoption of uniform procedure in the hearing of the matters.
  • Investigate Violation of Rules: The investigation wing of the commission may conduct an inquiry or investigation into the case of violations of rules.

Significance of NCDRC

  • Uphold Customer Interests: NCDRC upholds customer rights by identifying violations of consumer rights, investigating, and taking appropriate action.
  • Compensation for Customers: The NCDRC has powers to recall goods or withdraw hazardous services, and refund the price paid.
  • Stop Misleading Advertisement: NCDRC can instruct concerned trader/ manufacturer/ endorser/ advertiser/ publisher to discontinue a false or misleading advertisement.
  • Penalize Endorsers: NCDRC has powers to penalize a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.

The Consumer Protection Act, 2019 

  • About: The Consumer protection Act, 2019 is a legislation that upholds the rights of consumers and provides for the promotion and protection of the rights of consumers.
    • The act has enabled ordinary consumers to secure less expensive and often speedy redressal of their grievances.
  • Rights of Consumers under the Act:
    • Right to be protected against the marketing of goods and services which are hazardous to life and property;
    • Right to Choice among a variety of goods or services at competitive prices;
    • Right to be informed about the quality, quantity, potency, purity, standard, and price of goods or services;
    • Right to be heard;
    • Right to Consumer Awareness;
    • Right to seek Redressal against unfair or restrictive trade practices;
  • Formation of Commission: Based on the law, Consumer Protection Councils are formed at the Centre as well as in each State and District, with a view to promoting consumer awareness. 
  • Composition of the Councils: The Minister In-charge of the Department of Consumer Affairs in the Union Government heads the central council while the Ministers In-charge of the Consumer Affairs in the States heads the state Councils.
  • Coverage: The act covers both ‘goods’ as well as ‘services’. The goods are manufactured or produced and sold to consumers through wholesalers and retailers. 
    • The services cover transport, telephone, electricity, housing, banking, insurance, medical treatment, etc. However, no complaint can be filed for alleged deficiency in any service that is rendered free of charge or under a contract of personal service.

About Consumer protection Act, 1986

  • About: The Consumer Protection Act, 1986 has been successful in encouraging consumers to speak against insufficiency and flaws in goods and services.
    • The act enables the setting up of quasi-judicial machinery at the district, state and central levels to uphold consumer interests. 
  • Coverage: The act covers goods and services of all public, private, or cooperative sectors, except the ones exempted by the central government.
  • Significance of the Act
    • Magna Carta: The act is considered to be the ‘Magna Carta’ in the field of consumer protection for checking unfair trade practices, ‘deficient quality of goods’ and ‘deficiencies in services’.
    • Establishment of Consumer Forums:  The act has led to setting up of a widespread network of consumer forums and appellate courts all over India.
    • Consumer Empowerment: The act has affected how businesses approach consumers and has empowered consumers to a greater extent.
    • Social Responsibility: The law urges producers and traders to provide the right quality and quantity of goods at fair prices in the interest of the consumers.
    • Business Growth: A business grows only when consumer rights are given high priority. Business organizations indulged in malpractices shall find it difficult to continue.

Other Organizations

  • District Consumer Disputes Redressal Commission (DCDRC): It is established by the State Government in each district of the State, having authority to deal with cases valuing up to Rs 10 million.
  • State Consumer Disputes Redressal Commission (SCDRC): It is established by the State Government in the State and can take up cases valuing less than Rs 100 million.

Conclusion

NCDRC (National Consumer Disputes Redressal Commission) is a platform for customers to express their grievances and fight for their rights as customers. It also serves as an organization that punishes unfair trade practices.

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NCDRC FAQs

The National Consumer Disputes Redressal Commission (NCDRC) is a quasi-judicial commission set up under the Consumer Protection Act, 1986.

The main mandate of National Consumer Disputes Redressal Commission is to provide speedy, economical and summary resolution of consumer complaints or disputes.

The NCDRC is headed by a chairperson and comprises seven other members. The chairperson is headed by a retired or a sitting judge of the Supreme Court.

According to the Consumer Protection Act 1986, NCDRC can entertain consumer complaints that are valued over Rs. 1 Crore. After the amendment of the 1986 Act, the NCDRC will entertain complaints valued above Rs. 10 Crore.

The act covers both ‘goods’ as well as ‘services’. The goods are manufactured or produced and sold to consumers through wholesalers and retailers. The services cover transport, telephone, electricity, housing, banking, insurance, medical treatment, etc.

DCDRC is established by the State Government in each district of the State, having authority to deal with cases valuing up to Rs 10 million.

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