Consumer Protection Act, 1986: 

• The objective of this law: To provide a “simple, fast and inexpensive mechanism” to the citizens to redress their grievances in specified cases.

• Dispute Redressal Commission: The Act proposes a three-tier quasi-judicial machinery – National, State and District levels;

• National Consumer Disputes Redressal Commission – or in other words “National Commission”,
• State Consumer Disputes Redressal Commission or in other words “State Commission” and
• District Consumer Disputes Redressal Forum or in other words “District Forum”.

Consumer Protection Councils: The Act also provides that there should be a Consumer Protection Councils at the Union, State and District levels. Their main objectives are to promote and protect consumers’ rights.

Problems with the present Consumer Protection System: 

Delay in the verdict: There have been instances where the final settlement of disputes has taken several years. Thus the ordinary person believes that the Consumer Forums have become like civil courts, which take several years to dispose of even cases involving small compensation. Some of the reasons for the delay are:

• Rigid adoption of procedures laid down in the CPC, by some District Forum,

⇒ Liberal grant of adjournments,

⇒ Delay in appointments of Chairpersons and Members and

⇒ Lack of infrastructure.  

Non-implementation of orders: Even where orders have been passed, these are not getting executed on time.

Orders are not a deterrent: Orders of the Forums are not adequately punitive to act as a deterrent. Therefore, offenders generally do not take the consumer Forums seriously.

Recommendations:      

Follow simple procedures:   Consumer Forums should remember that their objective is to give justice with speed, simplicity, and an inexpensive manner.

• It should be reiterated that the Consumer Forum is not bound to follow the CPC or the Evidence Act but only the principles of natural justice.
• Thus they should follow simple procedures instead of lengthy procedures.

Mediation:  Apart from this, the option of mediation should be explored to dispose of a large number of cases between the parties.

Lok Adalats: Consumer forums may also organise Lok Adalats on the last working day of each week.

• Lok Adalats can settle many consumer disputes effectively.
• It should be mandated by legislation that matters up to a certain value, say Rs. 2 lakhs, be referred to Lok Adalats first.