CONSUMER PROTECTION LAWS IN INDIA

CONSUMER PROTECTION LAWS IN INDIAAN ANALYSIS OF THEIR EFFICACY

By

ANANTHA RANGANATHAN2014PGP035

Submitted in Partial Fulfilment of the Course Titled Legal Aspects of Business, as part of curriculumCONTENTSINTRODUCTION3CONSUMER PROTECTION IN INDIA4GOVERNMENT INITIATIVES4CONSUMER RIGHTS4CONSUMER AWARENESS5LEGISLATIVE MEASURES ON CONSUMER PROTECTION5The Indian Consumer Protection Act of 19865Consumer Protection (Amendment) Bill, 20116IMPLEMENTATION OF THE CONSUMER PROTECTION ACT, 19867CONSUMER GRIEVANCE REDRESSAL7CONSUMER PROTECTION LAWS AROUND THE WORLD8CONSUMER PROTECTION LAWS IN THE UNITED STATES8The Sherman Act8The Federal Trade Commission Act, 1914 and Clayton Act, 19388CONSUMER PROTECTION LAWS IN CANADA9The Combines Investigation Act9CONSUMER PROTECTION LAWS IN THE UNITED KINGDOM10The Fair Trading Act, 197310The Consumer Protection Act, 198710Other Legislations10CONSUMER PROTECTION LAWS IN AUSTRALIA11The Australian Industries Preservation Act, 190611The Trade Practices Act, 197411CONSUMER PROTECTION LAWS IN JAPAN11The Anti-Monopoly Act, 194711Other Legislations11CONSUMER PROTECTION LAWS IN GERMANY11The Act Against Restraints of Competition11CONSUMER PROTECTION LAWS IN SWEDEN12DATA ANALYSIS12Analysis: Cases Filed/Disposed of/Pending at National Consumer Disputes Redressal Commission:12Analysis: Cases Filed and Disposed of in State/U.T. Consumer Disputes Redressal Commissions:13Analysis: Cases Filed and Pending in State/U.T. Consumer Disputes Redressal Commissions:17Analysis: Cases Filed and Disposed of at District Consumer Disputes Redressal Forums:20CONCLUSION28BIBLIOGRAPHY30s

INTRODUCTIONThe consumer movement in India is as old as trade and commerce. In Kautilyas Arthashastra, there are references to the concept of consumer protection against exploitation by the trade and industry, short weightment and measures, adulteration and punishment for these offences. However, there was no organized and systematic movement actually safeguarding the interests of the consumers. (Lok Sabha Secretariat, 2013)

With the advent of the 20th century, due to rapid industrialization and multifaceted development in India after the Independence, there appeared a flood of consumer goods and services in the Indian Market, which almost changed the relationship between the consumer and the trader. Technological advancements in the field of media led to flooding of advertisements of goods and services further worsening the otherwise grim situation. Lack of consumer awareness, illiteracy, poverty, etc. further led to the exploitation of consumers. (Surekha, 2010)

Awareness of consumer rights varies in different regions in the country. It is very poor especially among the population in rural and far-flung areas of the country. Compared to the developed countries, the levels of consumer awareness in such a vast country with a large population like India is much lower. This is rooted in economic inequality, low levels of literacy and ignorance. Because of this, consumers are not able to assert their rights and on many occasions are exploited by the trade and industry and service providers. Protecting and promoting the welfare of consumers has thus become one of the major concerns. (Lok Sabha Secretariat, 2013)

Globalisation and liberalisation of trade and business has resulted in many products and services being available to the consumers. Growth in economy has resulted in increase in the purchasing power of the middle class section, which is the largest segment of the population. This has necessitated giving high priority for the protection of the consumers and promotion of responsible consumer movement in the country. (Report of the Working Group on Consumer Protection Twelfth Plan (2012-17), p.15)

Modern technological growth and complexities of the sellers techniques, existence of a vast army of middlemen and unethical and untruthful advertisements have aggravated the situation of consumer exploitation. (Surekha, 2010) The consumer has to be aware of his rights and play a key role. The success of consumerism is a strong function of consumer awareness and to avoid exploitation consumer must become knowledgeable. (Ibid, p. 21)

CONSUMER PROTECTION IN INDIAGOVERNMENT INITIATIVES The consumer movement is a socio-economic movement which seeks to protect the rights of consumers in relation to the goods purchased and services availed. The Government has been according high priority to better protect consumer interests. The Department of Consumer Affairs, has initiated a number of steps to promote a responsible and responsive consumer movement in the country. Such measures include the use of multi-media campaign for promoting consumer awareness and encouraging consumers' involvement through efforts of Government and Non-Governmental Organizations and others. (Lok Sabha Secretariat, 2013)

The main objectives of the consumer protection programme are as follows:

To create suitable administrative and legal mechanisms which would be within the easy reach of consumers and to interact with both Government and non-Governmental Organizations to promote and protect the welfare of the consumers.

To involve and motivate various sections of society including consumer organizations, women and youth to participate in the programme.

To generate awareness among consumers about their rights and responsibilities, motivate them to assert their rights so not to compromise on the quality and standards of goods and services and to seek redressal of their disputes in consumer fora, if required.

To educate the consumers as to be aware of their rights & social responsibilities. (Department of Consumer Affairs, 2011-12)CONSUMER RIGHTS The importance of consumer rights lies in their enforceability, which in turn depends largely on level of consumer education and awareness. In other words, it is not enough to have dynamic consumer laws in the country. There must be an equal thrust on education of all citizens on the consumer rights available to them and the mechanisms through which these rights, if violated can be redressed. (Lok Sabha Secretariat, 2013)

The rights of consumer which are being sought to be promoted and protected through the legislative mandate available under the Consumer Protection Act, 1986 inter- alia include:

The right to be protected against marketing of goods and services which are hazardous to life and property;

The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be to protect the consumer against unfair trade practices;

The right to be assured, wherever possible to access to variety of goods and services at competitive prices;

The right to be heard and to be assured that consumers interests will receive due consideration at appropriate fora;

The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers; and

The right to consumer education. (Op.cit : Report of the Working Group, p. 65)

From all these rights, it is the right to consumer education that can be said to be of paramount importance, since this is the gateway through which all the rights can be secured. An aware consumer not only protects his own rights but also induces efficiency in the economy which enables a country to become globally competitive. (Ibid, p. 66)CONSUMER AWARENESS In a world of information asymmetry the government has the responsibility to redress this imbalance. In the Government of India, the Department of Consumer Affairs is the focal point for different Departments and organizations to make the consumers aware of market realities as well as the rights of the consumers and the manner in which they can educate themselves and also enforce their rights. Accordingly, the Jago Grahak Jago campaign has become immensely popular and is now being used by several Departments to communicate with consumers. (Department of Consumer Affairs, p. 13)LEGISLATIVE MEASURES ON CONSUMER PROTECTION The Indian Consumer Protection Act of 1986 One of the most important milestones in the area of consumer protection/consumer movement in the country has been the enactment of the Consumer Protection Act, 1986. This Act has been necessitated because the well-organized sectors of manufacturers, traders and service providers with the knowledge of market and manipulative skills often attempt to exploit the consumers, in spite of the existence of various provisions of different laws for protecting their interests. Moreover, the increase in population has resulted in enormous pendency and delay in disposal of cases in the civil courts. Hence, the Consumer Protection Act, 1986 was enacted to better protect the interests of consumers. It is one of the most progressive and comprehensive pieces of legislation and is umbrella legislation covering all goods and services. (Lok Sabha Secretariat, 2013)

The Salient Features of the Act are as under:

The Act provides for establishing three-tier consumer dispute redressal machinery at the national, state and district levels.

It applies to all goods and services.

It covers all sectors, whether private, public or any person.

The Act provides for relief of a specific nature and also for compensation to the consumer as appropriate.

The Act also provides for setting up of Consumer Protection Councils at the Central, State and District levels, which are advisory bodies to promote and protect the rights of the consumers.

The provisions of the Act are in addition to and not in derogation of the provisions of any other law for the time being in force. (Op.cit : Report of the Working Group, pp. 15-16)

Consumer Protection Act has been in operation for about 25 years. A number of deficiencies and shortcoming in respect of its operation have come to light thereby requiring Amendments on three occasions, still leaving scope for further improvements. (Lok Sabha Secretariat, 2013)

Consumer Protection (Amendment) Bill, 2011 Consumer Protection Act was earlier amended thrice by Act No.34 of 1991, Act no.50 of 1993 and Act no.62 of 2002. The Amendment made in 1991 was mainly to incorporate provisions for the quorum of District Forum, appointing persons to preside over State Commissions/District Forums, in case of absence of President to enable the court function uninterruptedly. (J.S. Panswar, Navin Mathur and Darshana R. Dave, 2006, p. 94)

In 1993, the Act was again amended to address the inadequacies in the coverage of the main Act. It aimed to plug loopholes and enlarge the scope of areas covered and interest more power to the redressal agencies under the Act. (Consumer Protection Amendment Bill, 1993)

In 2002, Act was again amended to facilitate quicker disposal of complaints, enhancing the capability of redressal agencies, strengthening them with more powers, streamlining the procedure and widening the scope of the Act to make it more functional and effective. (Op.cit : Report of the Working Group, pp. 16-17)

As a pro-active measure, in July 2004, a Working Group was set up to examine the provision of the Act and consider relevant amendment to make the Act more meaningful, functional and vibrant. A number of proposed amendments were circulated to all State Governments, concerned Central Ministries and NCDRC in July 2006. (Lok Sabha Secretariat, 2013)

Revised proposed amendments were re-circulated in 2009 and in light of the comments received on the draft proposal, the Department of Consumer Affairs in consultation with the Ministry of Law and Justice formulated Consumer Protection (Amendment) Bill, 2010. (Lok Sabha Secretariat, 2013)

In the meantime some fresh additional comments of the Department of Financial Services were received on the proposed sections regarding unfair trade practice and unfair contract. These changes were approved by the Ministry of Law and Justice and formed part of the draft proposal of Consumer Protection (Amendment) Bill, 2011. (Lok Sabha Secretariat, 2013)

The main objectives of the proposed Bill are:

Widening the scope and amplifying the provisions of the Act. Facilitating quicker disposal of complaints. Rationalising the qualifications and procedure of selection of the Presidents and Members of Consumer Fora. Strengthening penal provisions/enforcement orders of Consumer Fora. (Ibid, pp. 5-8)

IMPLEMENTATION OF THE CONSUMER PROTECTION ACT, 1986CONSUMER GRIEVANCE REDRESSAL Consumers need an inexpensive and quick grievance redressal mechanism to ensure that manufacturers and service providers are accountable for the price and quality that the consumers are entitled to. Accordingly, it is necessary to provide several methods of grievance redressal including those which are available in accordance with the provisions of the Consumer Protection Act. (Op.cit Strategic Plan, p. 12)

Consumer Protection Act, 1986 enables the ordinary consumers to secure less expensive and often speedy redressal of their grievances. The Act mandates establishment of Consumer Protection Council at the Centre as well in each States and District, with a view to promoting the consumer awareness. (Lok Sabha Secretariat, 2013)

It also provides for a three-tier structure of the National and State Commissions and District Forums for speedy resolution of consumer disputes. At present there are 632 District Forums, 35 State Commissions with the National Consumer Disputes Redressal Commission (NCDRC) at the apex. (Lok Sabha Secretariat, 2013)

The provisions of this Act covers goods as well as services. The goods are those which are manufactured or produced or sold to consumers through whole sellers and retailers. The services are in the nature of transport, telephone, electricity, housing, banking, insurance, medical treatment etc. (Lok Sabha Secretariat, 2013)

If, the consumer is not satisfied by the decision of the District Forum, he can appeal to the State Commission and against the order of State Commission a consumer can appeal in the National Commission. (NCRDC, n.d.)

CONSUMER PROTECTION LAWS AROUND THE WORLDThe consumer organisations play a vital role in the developed countries like the United States, United Kingdom, Sweden, Japan, Germany, France and Belgium etc. for protection of consumers. In developed nations, due to strong consumerism, the consumers are organized and aware of fluctuations of market price and quality of commodity. The slogan of seller beware is prevalent there and emphasis is given to strong consumer movement. (Historical Development of Consumer Protection Law, Unknown)

The consumer protection laws in developed countries is described below: CONSUMER PROTECTION LAWS IN THE UNITED STATESThe Sherman ActIn the United States, the rapid industrialization after the end of Civil War in 1865 led to mergers and amalgamations and to formation of trusts and cartels, which advanced a great deal by 1880s. The concentration of corporate power at such an early stage of economic development and the awareness to check the economic power promoted the passing of the first antitrust legislation as early as 1890 which came to be known as the Sherman Act. (Historical Development of Consumer Protection Law, Unknown)

The Act declared every contract, combination in the form of trust or otherwise or, conspiracy in restraint of trade or commerce, to be illegal. Every party to any such contract, combination or conspiracy was made punishable with fine or imprisonments. (Sherman Act, Sec-I, 1980)

While this Act was of great use in curbing the wave of mergers that had market the industrial scene of the United States towards the end of the nineteenth century of this century, there were certain monopolistic and restrictive practices to which the Act did not reach. (Sherman Act, Sec-I, 1980)

The Federal Trade Commission Act, 1914 and Clayton Act, 1938In order to remove this infirmities, two major legislations were passed in 1914 namely the Federal Trade Commission Act, 1914 and the Clayton Act. The Federal Trade Commission Act set up new machinery the Federal Trade Commission which shared with the department of justice the responsibility for enforcement of all anti-trust legislation in addition to the setting up of this new enforcement agency. The Act prohibited unfair methods of competition. (Historical Development of Consumer Protection Law, Unknown)

The Act was amended in the year 1938 by Wheeler-lea Act which further extended the scope of the Act to cover unfair or deceptive acts or practices in commerce. The Clayton Act was designed specially to deal with the problems of mergers and to prohibit certain types of individual conduct which were beyond the reach of the Sherman Act. (Clayton Act, Sec. 2. , 1914)

It declared four types of restrictive practices or device puce discrimination, 6 exclusive dealing and tie-in contracts, interoperate share holdings and interlocking of directorates, illegal attempts at circumvention of the Clayton Act resulted in passing of the Robinson Patman Act, 1936 which tightened up the law on price discrimination. (Federal Trade Commission Act, Section 2. , 1914)

All this legislation collectively provides the framework of the antitrust law in the United States. In addition to these anti-trust legislations there are a number of other legislations on consumer protection e.g. the Consumer Credit Protection Act, 1968 which requires certain disclosures in consumer credit sales and loans; the Consumer Leasing Act, 1970 which deals with consumer leases; the Fair Credit Billing Act, 1974 which contains provisions relating to credit billing practices, and the Magnuson-Moss Warranty Act, 1975, which establishes certain minimum requirements for written warranties offered by suppliers of consumer products. The Fair Packaging Act, 1972 and the Consumer Product Safety Act, 1972 provide protection to the consumer in several ways. The United States has even today, the most comprehensive and well established anti-trust and consumer protection law in the world. (V.K. Agarwal, 1989)CONSUMER PROTECTION LAWS IN CANADACanada had anticipated U.S.A. 7 anti-trust legislation with an Act of 1889 for prevention and suppression of combines in restraint of trade. The purpose of the legislation was to stamp with illegality the agreements which had been carried into effect for preventing and lessening competition. (Historical Development of Consumer Protection Law, Unknown)

The Combines Investigation ActThe scope of the legislation was extended by the enactment of Combines Investigation Act, 1910 which also covered mergers, trusts and monopolies operating to the common detriment. (Historical Development of Consumer Protection Law, Unknown)

Towards the end of World War-I there was strong public demand to check rising prices. In response to that demand the board of Commerce Act and the Combines and Fair Prices Act were passed in 1919. (Historical Development of Consumer Protection Law, Unknown)

1923, a new Combines Investigation Act was passed which was amended many a times in 1951, 1962, 1960, 1969 and 1976. The scope of the Act is extended to cover resale price maintenance, prohibition of collusive, arrangements, unfair trade practices etc. The Act is directed against preventing, limiting or lessening unduly the manufacture or production of an article, or to enhance unreasonable the price thereof, to restrain or injure trade or commerce in relation to any article formation of a merger or monopoly; discrimination as between purchasers etc. Misleading advertisements and other deceptive practices were considered and the Combines Investigation Act, 1969 was codified. The Act was further amended in 1976 to make the provisions of Unfair Trade Practices more stringent and effective. (Historical Development of Consumer Protection Law, Unknown)CONSUMER PROTECTION LAWS IN THE UNITED KINGDOMIn the United Kingdom, the anti-monopoly legislations came immediately after the World War-II. Between 1948 and 1973 a number of statutes were passed for this purpose. These statutes were the Monopolies and Restrictive Practices Enquiry and Controls Act, 1948 amended by the Monopolies and Restrictive Practices Act, 1953, the Restrictive Trade Practices Act, 1968; the Resale Price Act, 1964; the Monopolies and Mergers Act, 1965 and the Fair Trading Act, 1973. (Historical Development of Consumer Protection Law, Unknown)

All these legislations except the Fair Trading Act, 1973 have been repealed by the consolidating enactments, the Restrictive Trade Practices Act, 1976 the Resale Price Act, 1976 and the Restrictive Practices Court Act 1976. The Restrictive Trade Practices Act, 1976 has been supplemented by the Restrictive Trade Practices Act, 1977. (Historical Development of Consumer Protection Law, Unknown)

The Fair Trading Act, 1973The Fair Trading Act, 1973 introduced new and comprehensive legislation. It extended the scope of the existing laws on monopolies and mergers and restrictive trade practices. The Act is wide enough to cover even professions, businesses, nationalized industries and public undertaking. It envisages a twin machinery for its enforcement - Director General of Fair Trading and Consumer Protection Advisory Committees. The Act seeks to protect the consumers from Consumer Trade Practices, and Unfair Practices. It also lays down the provisions in respect of pyramid selling and similar trading schemes. It has enlarged the powers and functions of the office of Registrar of Restrictive Trading Agreements which is now merged in the office of the Director General of Fair Trading. Further the Competition Act, 1980 has been enacted to make provisions for the control of anti-competitive practices in supply and acquisition of goods, and the supply and securing of services; to provide for the investigation of prices and charges by the Director General of Fair Trading, and to make some amendments with respect to the Fair Trading Act, 1973 and the Restrictive Trade Practices Act, 1976. (Fair Trading Act 1973, Sec. 1. )

The Consumer Protection Act, 1987Recently, the Consumer Protection Act; 1987 has been passed by the Parliament of Great Britain after extensive debate on the same. This is a legislation of wide range which creates both civil as well as criminal liability. The Act consists of five parts and four schedules which deal mainly with three subject i.e. product liability, unsafe goods and misleading price indications. (Historical Development of Consumer Protection Law, Unknown)

Other LegislationsApart from the aforesaid enactments, the United Kingdom has a number of other legislations to protect the interest of the consumers. These include the Consumer Protection Act, 1961 which empowers the executive to promulgate regulations. Regarding product standards if it is expedient to reduce the risk of personal injury; the Unfair Contracts Terms Act, 1977 which has various provisions to protect the consumers from unfair terms in the standard form of contracts; the Price Commission Act, 1977 which requires that the firms with large turnover should notify price increases and periodical report on profits, and the smaller firms to keep appropriate financial records. (Competition Act 1980, Secs 21 to 24.)CONSUMER PROTECTION LAWS IN AUSTRALIAThe Australian Industries Preservation Act, 1906In Australia, the first anti-trust legislation had been passed in the year 1906. The Australian Industries Preservation Act was based on the Sherman Act, 1890 of the United States. The Act was amended in 1911, but still it remained ineffective. In 1965, another Act was passed following the Restrictive Trade Practices Act, 1956 of the United Kingdom. Finally, the Trade Practices Act, 1974 was passed which replaced the 1965 Act. (Historical Development of Consumer Protection Law, Unknown)

The Trade Practices Act, 1974The Trade Practices Act, 1974 provides very strong legislative measures to promote efficiency and competition in business, to control restrictive trade practices and to protect the consumers from unfair trade practices. It prohibits contracts, arrangements and understandings in restraint of trade, monopolization, exclusive dealings; resale price maintenance, price discriminations; and mergers. It also prohibits, misleading or deceptive conduct; false representations; offering gifts and prizes with the intention of not providing them; bait advertising, referral selling; and supply of hazardous and risky goods which do not comply with the safety standards. (Trade Practices Act, 1974, Sec. 45.)CONSUMER PROTECTION LAWS IN JAPANThe Anti-Monopoly Act, 1947In Japan, the anti-monopoly law was enacted in 1947 - the Act concerning prohibition of Private Monopoly and Maintenance of Fair Trade. This act was known as Anti-Monopoly Act. The Act has sought to prevent excessive concentration of economic power by prohibiting formation of any holding company or operation of any company as a holding company. The Act has laid down provisions to check acquisition of business, assets or management of another company; mergers of directorship. The Anti-monopoly Act was amended in 1977. Chapter V of the Act contains provisions against discrimination of prices, imposing of undue conditions etc. It also attempts to protect the interest of the consumers from misleading representation, prize competition etc. (Historical Development of Consumer Protection Law, Unknown)Other LegislationsIn addition to the Anti-monopoly Act, there are four supplementary legislations, viz. The Marine Transport Act, 1949; The Export and Import Trading Act, 1952; The Small and Medium sized Enterprise Organisation Act, 1957, and Act against The Unjustifiable Premium and Misleading representations 1962 to deal with the problems of Monopolies, Restrictive and Unfair Trade Practices. (Historical Development of Consumer Protection Law, Unknown)CONSUMER PROTECTION LAWS IN GERMANYThe Act against Restraints of CompetitionIn Germany, after the World War-II, the government launched several programmes to control concentration of economic power. The detailed antimonopoly legislation in that country was enacted in 1957 namely, Act against Restraints of Competition. The Act has been amended from time to time. The Act has sought to prevent abuse of economic power; to control mergers and takeover; and to create conditions for the enterprises to develop freely in a competitive economy. The Act does not make the market dominance or even monopoly per se illegal, but it prohibits the abuse of such dominance or monopoly. Similarly, a merger is not prohibited if it is not prejudicial to the national economy. The Act also prohibits coercion, boycott and discrimination, whether the one ejected by unilateral or concerted action of enterprises.CONSUMER PROTECTION LAWS IN SWEDENSweden is the country, which has done a pioneering work in the field of consumer protection through an active government policy. The main consumer legislations are The Marketing Practices Act, 1970, and The Prohibiting Improper Terms of Contract Act, 1971. These legislations are implemented through the office of a National Consumer Ombudsman, a senior official with complete autonomy, appointed directly by the King-in-Council for a specified term. The Swedish citizen considers the Consumer Ombudsman as the primary method of obtaining consumer protection. (Koul)

The Swedish legislation is a part of package designed to help the consumer and also includes provisions against the undesirable terms of Trading Act (for monitoring standard contracts) and further legislation regarding credit sales, hire purchase, legal aid, holiday travel and food stuffs. (O.P. Garg, 1992)

DATA ANALYSISThe total number of consumer complaints filed/disposed since inception under the Consumer Protection Law is as below:

Source: (Lok Sabha Secretariat, 2013)Analysis: Cases Filed/Disposed of/Pending at National Consumer Disputes Redressal Commission:Cases filed / disposed of / pending in the National Consumer Disputes Redressal Commission of India are as under:

Table 1: Statement of Cases Filed / Disposed of / Pending in the National Consumer DisputesRedressal Commission of India as on December 31, 2008

Findings and Interpretations:

The total number of cases filed in the National Consumer Disputes Redressal Commission of India till December 31, 2008 is 56,921. (Garg, 2010)

Out of the total number of cases filed, 47,304 cases have been disposed of; whereas 9,617 cases are still pending. (Garg, 2010)

The figure clearly exhibits that 83 percent of the cases filed since inception of National Consumer Disputes Redressal Commission of India have been disposed of, and 17 percent of the cases filed since inception are still pending. (Garg, 2010)

It is evident that commission is trying its best to efficiently redress the grievances of the consumers at the national level. (Garg, 2010)Analysis: Cases Filed and Disposed of in State/U.T. Consumer Disputes Redressal Commissions: Cases Filed / disposed of in the different State/U.T. Consumer Disputes Redressal Commissions of India as on December 31, 2008 are as under:

Table 2: Statement of Cases Filed / Disposed of in State/U.T. Consumer Disputes Redressal Commissions of India as on December 31, 2008

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Findings and Interpretations:

The total cases filed are 4, 64,530, out of which 3, 52,490 cases has been disposed of. It is evident that majority of the State/UT Consumer Disputes Redressal Commissions had very high disposal percentage of the cases. (Garg, 2010)

Daman, Diu and DNH; and Sikkim have 100 percent disposal percentage. It is followed by Tripura with 98.92 percent, Karnataka with 98.11 percent, Delhi with 96.85 percent, and West Bengal with 95.26 percent disposal of the total case filed since inception. (Garg, 2010)

Out of 34 State/U.T. Consumer Disputes Redressal Commissions, 8 states viz. Assam, Haryana, Maharashtra, Manipur, Nagaland, Orissa, Punjab and Uttar Pradesh have lower disposal percentage as compared to the overall average disposal rate of 75.9 percent. (Garg, 2010)

The overall disposal for all the State/UT is 75.88 percent, which is a sign of efficient functioning of the Consumer Disputes Redressal Commissions at State/U.T. level. (Garg, 2010)Analysis: Cases Filed and Pending in State/U.T. Consumer Disputes Redressal Commissions:

Cases Filed / pending in the different State/U.T. Consumer Disputes Redressal Commissions of India as on December 31, 2008 are as under:

Table 3: Statement of Cases Filed / Pending in State/U.T. Consumer DisputesRedressal Commissions of India as on December 31, 2008

Findings and Interpretations:

Analysis depicts that the total number of cases filed are 4, 64,530, out of which 1, 12,040 cases are pending as on December 31, 2008. (Garg, 2010)

The overall pendency rate is 24.12 percent. (Garg, 2010)

It is clear on the basis of analysis of table 2 that the four state/UT Consumer Disputes Redressal Commissions with high percentage of pendency of cases are Uttar Pradesh, Assam, Haryana, and Orissa with 59.9 percent, 47.63 percent, 41.38 percent, and 39.93 percent of pending cases. (Garg, 2010)

Out of the 34 State/U.T. Consumer Disputes Redressal Commissions, 9 State/U.T. Consumer Disputes Redressal Commissions (26.47%) have pendency rate higher than the overall pendency rate of 24.12 percent. (Garg, 2010)

Daman & Diu, and Sikkim are on the top State/UT Consumer Disputes Redressal Commissionswith zero percent pendency rate. (Garg, 2010)Analysis: Cases Filed and Disposed of at District Consumer Disputes Redressal Forums: Cases Filed / disposed of in District Consumer Disputes Redressal Forums in the different State/U.T. of India as on December 31, 2008 are as under:

Table 4: Statement of Cases Filed / Disposed of in the District ConsumerDisputes Redressal Forums of States/U.T. of India as on December 31, 2008

Findings and Interpretations:

Analysis reveals that 26, 27,478 cases have been filed out of which 23, 92,199 cases (91.05%) have been disposed of. (Garg, 2010)

The overall disposal rate of 91.05 percent reflects high disposal rate of the cases at District Consumer Disputes Redressal Forums of the State/U.T., in comparison to the National and State Consumer Disputes Redressal Commissions on India. (Garg, 2010)

It is further observed that Lakshadweep stood first with 100 percent disposal rate of the cases. (Garg, 2010)

Manipur (97.59%), Chandigarh (97.5%) and Mizoram (97.39%) stood at second, third and fourth position on the basis of disposal percentage of the cases. (Garg, 2010)

Analysis: Cases Filed and Pending at District Consumer Disputes Redressal Forums: Cases Filed / pending in the District Consumer Disputes Redressal Forums as on December 31, 2008 are as under:

Table 5: Statement of Cases Filed / Pending in the District Consumer Disputes RedressalForums of States/U.T. of India as on December 31, 2008

Findings and Interpretations:

Analysis reveals that the overall average percentage of pendency of cases is 8.95 percent. (Garg, 2010)

Out of 34 State / U.T. DCRFs, 11 State / U.T. DCRFs (32.35%) have pendency rate higher than the overall average pendency rate. (Garg, 2010)

The pendency rate is highest for the Uttar Pradesh (16.92%), it is followed by Nagaland, Gujarat, and Bihar with pendency percentage of 16.67 %, 15.73%, and 14.91 percent respectively. (Garg, 2010)

District Consumer Disputes Redressal Forums at Lakshadweep (0%) have best performed, and it is followed by Chandigarh (2.5%) so far as lowest pendency rate is concerned. (Garg, 2010)

Analysis: Comparison of Cases Disposed of and Pending in Various Fora:

Source: (Garg, 2010)

Findings and Interpretations:

It is found on the basis of analysis of disposal rate of cases that agencies at district level are in the top (91.05%); it is followed by national level (83.1%), and state level (75.88%). (Garg, 2010)

It is observed that the performance of all the three agencies at various levels seems to be quite satisfactory so for as disposal percentage is concerned. (Garg, 2010)

However, the agencies working at national level and state level need to be more efficient to dispose of cases of consumers not satisfied with agencies working at lower level. (Garg, 2010)

Other Observations: The traditional Indian legal system, in addition to a huge backlog of cases, is experiencing a litigation explosion in the area of consumer protection. According to one report, the total number of consumer cases pending in different fora was 359,469 cases as of June, 2004.60 Around 45,798 cases have been filed before the national commission since its inception. At present, 8,884 cases are pending disposal. The huge backlog of consumer cases before consumer fora is forcing the Indian legal systems to think of alternatives for speedy disposal of consumer cases. (Prasad)

As per information made available by NCDRC, out of 38,73,772 cases filed in consumer fora at three-tier level since inception, 35,24,221 cases (almost 91%) have been disposed of. (Lok Sabha Secretariat, 2013)

Increase in consumer awareness has propelled manufacturers and traders to ensure quality service to consumers. Resultant to that, the number of cases filed in National and State Commission have come down from total of 40,391 in the year 2007 to 22,101 in the year 2011. (Rajya Sabha)

Similarly, number of cases filed in District Consumer Forums have also come down from 1, 53,738 to 78,440 during the same period. (Rajya Sabha)

CONCLUSIONThe Indian legal system experienced a revolution with the enactment of the Consumer Protection Act of 1986 (CPA), which was specifically designed to protect consumer interests. The CPA has received wide recognition in India as poor mans legislation, ensuring easy access to justice. It is rightly said that the present-day concern for consumer rights . . . is not new and that consumers rights like the right to have safe, un-adulterated and defect-free commodities at appropriate prices has been recognized since ancient times. (Prasad)

The CPA commands the consumers support because of its cost-effectiveness and user-friendliness. In fact, the CPA creates a sense of legal awareness among the public and at the same time, brings disinterest to approach traditional courts, especially on consumer matters. It has changed the legal mind-set of the public and made them think first of their remedies under the CPA, regardless of the nature of their case. In short, the CPA has instilled confidence among the teeming millions of impoverished litigants. (Prasad)

The greatness of the CPA lies in its flexible legal framework, wider jurisdiction and inexpensive justice. Basically, the CPA liberalizes the strict traditional rule of standing and empowers consumers to proceed under the CPA. Consumer groups, the central or any state government are all empowered to lodge complaints under the CPA. This liberalization shows the care that has been taken to represent and fight for the cause of weak, indifferent and illiterate consumers. (Prasad)

The novelty of the CPA is the inclusion of both goods and services within its ambit. The consumer can bring suit for defective products as well as for deficiency of services. In the event of any deficiency, all services, whether provided by the government or private companies, can be questioned under the CPA. (Prasad)

The CPA also liberalized rigid procedural requirements and introduced simple and easy methods of access to justice. To proceed under the CPA, the consumer need only pay a nominal fee and need not send any notices to the opposite party. A simple letter addressed to the consumer forum draws enough attention to initiate legal action. (Prasad)

Another major procedural flexibility is the option the consumer has to engage a lawyer. If the consumer prefers, he can represent himself. The simple measures of action drive consumers to avail themselves of the benefits of the CPA. (Prasad)

The CPA initiated a legal revolution by ushering in the era of consumers and developing a new legal culture among the masses to take recourse under the CPA regardless of their grievance. The Consumer Disputes Redressal agencies, the National Commission, the State Commission, and the District Fora are working together in a way that is revolutionizing the present Indian legal system and challenging the traditional system of delivering justice. With easy access to the courts guaranteed by the CPA, consumers now wage legal battles against unscrupulous traders or service providers without any hesitation. (Prasad)

The Indian government is also taking an active interest in protecting consumer rights and promoting effective consumer movements. In 2003, the Planning Commission of India identified Consumer Awareness, Redressal, and Enforcement of the Consumer Protection Act of 1986 as a priority, and as a result, a national action plan was prepared. (Prasad)

The consumer fora created by the CPA have proven to be effective, disposing of thousands of cases with few legal formalities, and leading the way toward well-founded consumer jurisprudence in India. (Prasad)

The prospect of the consumer justice system in our country appears to be bright in view of the proactive policy, schemes / programmes adopted by the Government. However, the present drive and direction need to be supplemented by adopting different channels of redressal. And there is a dire need for the State Governments to give deserving priority to Consumer welfare and gear up themselves to meet the challenges thrown up by market economy. Involvement of trade and industry, civil society organizations and above all consumer themselves are vital for betterment of consumer welfare in the years to come. (Secratariat, 2013)

Consumer Protection Act, 1986 as amended up-to-date is a welcome initiative taken by the regulatory agencies of India to protect the consumers from unscrupulous practices of the tainted product and/or service providers. Consumer Redressal agencies are playing an important role to protect the interest ofconsumers by providing justice to the affected consumers. (Garg, 2010)

Interpretation of the data suggests that the performance of all the three agencies at various levels of redressal are quite effective, although some improvement is possible at the national and state levels. The study observes that the overall disposal rate of District Consumer Redressal Forums is much better as compared to the State as well as the National Consumer Disputes Redressal Commission of India. On the overall performance basis; the District Consumer Disputes Redressal Forums may be assigned first rank. It is followed by National Consumer Disputes Redressal Commission and State Consumer Disputes Redressal Commission respectively. (Garg, 2010)

Hence, the agencies at grass root level are striving its best to provide quick justice to the consumers, however, there is still need of agencies working at state and national level to dispose of the pending cases as early as possible by creating additional/circuit benches as per the provisions of Consumer Protection Act, 1986 as amended up-to-date, as it is rightly said that justice delayed is justice denied. (Garg, 2010)

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