Consumer Commission

What is Consumer

“Consumer” is someone buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment. It also includes any user of such goods other than the person who buys such goods for consideration or under any system of deferred payment, when such use is made with the approval of such person.

“Consumer” includes someone who  hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment. It includes any beneficiary of such service other than the person who hires or avails of the services when such services are availed of with the approval of the first mentioned person.

What is Consumer Commission

The Consumer Protection Act, 2019  is a benevolent social legislation that lays down the rights of the consumers and provides their for promotion and protection of the rights of the consumers. The Act mandates establishment of Consumer Protection Councils at the Centre as well as in each State and District, with a view to promoting consumer awareness. They are established to provide speedy, affordable and accessible justice to consumers facing issues like defective goods, deficient services or unfair trade practices.

Consumer Commission as an international instrument

United Nations Guidelines for Consumer Protection states that the Member States should establish or maintain legal and/or administrative measures to enable consumers or, as appropriate, relevant organizations to obtain redress through formal or informal procedures that are expeditious, fair, transparent, inexpensive and accessible.

Member States should work towards enhancing consumer confidence in electronic commerce by the continued development of transparent and effective consumer protection policies, ensuring a level of protection that is not less than that afforded in other forms of commerce. Member States should, where appropriate, review existing consumer protection policies to accommodate the special features of e-commerce and ensure that consumers and businesses are informed and aware of their rights and obligations in the digital marketplace.

District Consumer Dispute Redressal Commission

It's Establishment and Legal Framework.

Under section 28 of Consumer Protection Act, 2019, the district consumer dispute redressal was established. It is the very first stage for the dispute redressal established in almost every district. It consists of a President and not less than two members, with the maximum number being prescribed by the Central Government in consultation with the Central Commission. Under Section 29, the Central Government is empowered to frame rules regarding the qualifications, recruitment, appointment procedure, term of office, resignation, and removal of the President and members. The District Commission has jurisdiction to entertain complaints where the value of goods or services paid as consideration does not exceed one crore rupees. A complaint may be instituted where the opposite party resides, carries on business, has a branch office, or personally works for gain. In cases involving multiple opposite parties, the complaint may be filed where any one of them is located, subject to the permission of the District Commission. Jurisdiction also extends to places where the cause of action arises wholly or partly, as well as where the complainant resides or personally works for gain. The Commission ordinarily functions at the district headquarters, although it may also operate at other places notified by the State Government.

Under Section 35, a complaint may be filed by a consumer, a recognized consumer association, one or more consumers having the same interest, or by the Central Government, Central Authority, or State Government. Proceedings before the Commission are conducted by the President and at least one member sitting together. Complaints are ordinarily required to be decided within twenty-one days from the date of filing. In cases of disagreement between the President and the member, the opinion of the majority prevails and constitutes the order of the District Commission. Section 40 empowers the District Commission to review its own orders, and a review application must be filed within thirty days from the date of the order.  Under Section 41, an appeal against the order of the District Commission may be preferred before the State Commission within forty-five days from the date of the order, although the State Commission may entertain an appeal filed after the prescribed period if sufficient cause for the delay is shown.

DISPOSABLE RATE OF DISTRICT COMMISION

This has been taken from Consumer Justice Report 2026 by India Justice Report.

The recent report by India Justice Report titled " Consumer Justice Report 2026: Assessing Capacity of Redressal Commission in India" shows how many complaints were filed from which how many were disposed between 2010-2024. Further, this report also highlights the number of days commission has taken to resolve the dispute and as per the date almost in 8,oo,ooo it took more than 365 days which shows the delayed redressal procedure.

State Consumer Disputes Redressal Commission

A State Consumer Disputes Redressal Commission (SCDRC) is a quasi-judicial body established by state governments in India under the Consumer Protection Act, 2019. The State Commission, it is a state-level dispute resolution forum. It hears and decides appeals filed against the orders passed by District Commissions within that state.

State Commission as defined in legislation

Particularly defined under Section 42 of the Consumer Protection Act ,The State Government shall, by notification, establish a State Consumer Disputes Redressal Commission, to be known as the State Commission, in the State. The State Commission shall ordinarily function at the State capital and perform its functions at such other places as the State Government may in consultation with the State Commission.

Subject to the other provisions of the Act and in pursuance of  sub-clause (i) of clause (a) of sub-section (1) of section 47, the State Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds fifty lakh but does not exceed two crore rupees.

Official Definition of State Commission

Section 2(44) of the Consumer Protection Act, 2019 defines:"State Commission" means a State Consumer Disputes Redressal Commission established under sub-section (1) of section 42.

Section 42(1) provides: The State Government shall, by notification, establish a State Consumer Disputes Redressal Commission to be known as the State Commission, in the State.

Section 2(27) defines "member" as including the President and a member of the National Commission or a State Commission or a District Commission, as the case may be, thus encompassing State Commission members within the definition.

The term "commission" is operationalised through section 2(c) of the Consumer Protection (Consumer Commission Procedure) Regulations, 2020 which defines: "Consumer Commission" means a District Consumer Disputes Redressal Commission, a State Consumer Disputes Redressal Commission or the National Consumer Disputes Redressal Commission.

Legal Provisions Relating to the State Commission

Consumer Protection Act, 2019

Section 35 states that The primary legislative source is the Consumer Protection Act, 2019, which came into force on 20 July 2020 and 24 July 2020 for remaining provisions. The central provisions governing the State Commission are:

Section 42 provides  Establishment of State Consumer Disputes Redressal Commission. Each State Government is mandated by notification to establish a State Commission.

Section 43 stating  Qualifications, method of recruitment, and conditions of service of the President and members of the State Commission. Each State Commission consists of a President, who must be or have been a Judge of a High Court, and not less than four members, or such higher number as may be prescribed in consultation with the Central Government.

Section 47 which states Jurisdiction of the State Commission. Sub-section (1) confers on the State Commission jurisdiction to entertain complaints where the value of goods or services paid as consideration exceeds specified pecuniary limits, and to call for records and pass appropriate orders in any consumer dispute pending before or decided by any District Commission within the State.

Section 48 states Transfer of cases between State Commissions.

Subordinate Legislation

Consumer Protection (Consumer Commission Procedure) Regulations, 2020 (CCP Regulations)

Notified on 24 July 2020 by the National Consumer Disputes Redressal Commission under section 103(1) of the CPA 2019, in supersession of the Consumer Protection Regulations, 2005, these Regulations govern the procedure before all three tiers of the Consumer Commission. They define "Consumer Commission" to include the District Commission, State Commission, and National Commission.

Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020

These rules, made under section 101 of the CPA 2019, specify the qualifications and terms of appointment of the President and members of State Commissions, the procedure for their selection, emoluments, and the administrative infrastructure of commissions.

State Commission as Defined in International Instruments

There is no binding international treaty that specifically defines a "State Consumer Disputes Redressal Commission" as a term of art. However, several international instruments are directly relevant to the conceptual framework of State Commissions as domestic consumer dispute resolution bodies.

United Nations Guidelines for Consumer Protection (UNGCP)

The UNGCP were first adopted by the General Assembly in Resolution 16 April 1985, later expanded by ECOSOC. UNCTAD promotes the Guidelines and encourages Member States to create awareness of ways in which States, businesses, and civil society can promote consumer protection in the provision of public and private goods and services.

The UNGCP do not mandate a specific institutional form but they do require that member states establish "measures enabling consumers to obtain redress" in UNGCP 2015 Section E, paragraph 29. This encompasses both formal judicial redress and informal alternative dispute resolution mechanisms, which is precisely the space Indian State Commissions occupy. The UNGCP leave the institutional design entirely to national discretion, enabling India's three-tier "commission" model rather than prescribing a court-centred approach.

UNCTAD Model Law on Consumer Protection (2016)

Developed by UNCTAD's Intergovernmental Group of Experts, the Model Law recommends member states establish dedicated consumer protection institutions with both adjudicatory and regulatory powers. While it does not use the term "state commission", it recognises the importance of sub-national adjudicatory mechanisms in federal or quasi-federal states, endorsing a tiered architecture for states with geographically dispersed populations.

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Variations in Legislative Scheme Arising from State-Specific Legislations

The CPA 2019 is a Central Act, and its provisions prevail uniformly across the country under the concurrent list (Entry 46, List III, Seventh Schedule). State Governments may make rules under section 102 of the CPA 2019, but cannot deviate from the substantive or jurisdictional provisions of the central statute.

However, significant variation exists across states in:

Maharashtra: The Maharashtra State Consumer Disputes Redressal Commission operates under the CPA 2019, which came into force on 20 July 2020 replacing the 1986 Act, and provides for strict penalties including imprisonment for adulteration and misleading advertisements. Maharashtra maintains a Head Office in Mumbai and a circuit bench in Aurangabad (now Chhatrapati Sambhajinagar). Under the revised pecuniary jurisdiction, the Maharashtra Commission exercises original jurisdiction for claims above ₹2 crore and below ₹10 crore. Complaints between ₹50 lakhs and ₹2 crore are directed to the State Commission as well per state administrative practice.

Kerala: The Kerala State Consumer Disputes Redressal Commission is the appellate body for 14 District Commissions of Kerala. It has original jurisdiction for complaints valued between ₹50 lakhs and ₹2 crore and is the first commission to have initiated redressal through online collaborative means E-adalat.

National commission

Central government have the authority under section 9 to make national consumer dispute commission.  

Composition of national commission

For president, a person is or to be judge of supreme court, who will be appointed by central government in consultation with chief justice of India, not less than four and not more than such number of members as may be prescribed one of whom shall be a woman, who shall have the following qualifications, namely:-

• be not less than thrity-five years of age;  

• possess a bachelor’s degree from a recognized university; and be persons of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:
• Provided that not more than fifty percent of the members shall be from amongst the persons having judicial background. “Persons having judicial background” shall mean  persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level:

Disqualification  

• A person shall be disqualified for appointment if he-   (a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of the Central Government involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or   (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e) has in the opinion of the Central Government such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or (f) has such other disqualification as may be prescribed by the Central Government. Every appointment by the Central Government is required to be made on the recommendation of a Selection Committee consisting of a Judge of the Supreme Court to be nominated by the Chief Justice of India, the Secretary in the Department of Legal Affairs and the Secretary in charge of Consumer Affairs in the Government of India. Section 20(2) empowers the Central Government to fix the salary/ honorarium and other allowances payable to the members as well as the other terms and conditions of their service.  

Term of Members

• Every member of the National Commission shall hold office for a term of five years or upto seventy years of age, whichever is earlier and shall be eligible for reappointment for another term of five years or upto the age of seventy years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions for appointment mentioned in Section 20(1)(b) and such re-appointment is made on the basis of the recommendation of the Selection Committee.

Jurisdiction of National Commission  

• Section 21 provides that the National Commission shall have jurisdiction: (a) to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceeds rupees one crore;   (b) to entertain appeals against the orders of any State Commission. However, under second proviso to Section 19 no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited in the prescribed manner fifty percent of the amount or rupees thirty-five thousands, whichever is less; and
• (c) to call for the records and pass appropriate orders in any consumer dispute which is pending before, or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.

Limitation Period for Filing of Complaint

• Section 24A provides that the District Forum, the State Commission, or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. However, where the complainant satisfies the Forum/Commission as the case may be, that he had sufficient cause for not filing the complaint within two years, such complaint may be entertained by it after recording the reasons for condoning the delay. Section 24B authorizes the National Commission to exercise administrative control over the State Commissions in the matter of calling for periodical returns regarding the institution, pendency and disposal of cases, issuance of instructions regarding adopting of uniform procedure in hearing of matters, serving copies of documents, translation of judgements etc. and generally overseeing the functioning of the State Commission/District forum to ensure that the objects and purposes of the Act are served in the best possible manner. Similarly, the State Commission has been authorized to exercise administrative control over all the District forum within its jurisdiction in all the above matters.

Powers of the Redressal Agencies  

• The District Forum, State Commission and the National Commission have been vested with the powers of a civil court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters:  

• the summoning and enforcing attendance of any defendant or witness and examining the witness on oath;  

• the discovery and production of any document or other material object producible as evidence;  

• the reception of evidence on affidavits;  

• the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source;

• issuing of any commission for the examination of any witness; and  

• any other matter which may be prescribed.

 Appeal

In national commission upto claim of compensation of rs.1 crore complaint can be registered. Section 15 entitles a person aggrieved by an order of the District Forum to prefer an appeal to the State Commission. Similarly any person aggrieved by any original order of the State Commission may prefer an appeal to the National Commission under Section 19. Likewise, any person aggrieved by any original order of the National Commission may prefer an appeal to the Supreme Court, under Section 23.

Aggrieved by the orders issued by the National Consumer Dispute Redressal Commission, appeal petition may be filed before Supreme Court of India within 30 days from the date of receipt of orders.

Penalties

Section 27 of the Act deals with penalties and provides that failure or omission by a trader or other person against whom a complaint is made or the complainant to comply with any order of the District Forum, State Commission or the National Commission shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine of not less than Rs. 2,000 but which may extend to Rs. 10,000, or with both. However, on being satisfied that the circumstances of any case so require, the District Forum or the State Commission or the National Commission may impose a lesser fine or a shorter term of imprisonment.

Institutional capacity — key findings

The Consumer Justice Report 2026, published by the India Justice Report (IJR) in March 2026, is the first comprehensive study of the institutional capacity of consumer redressal commissions across all 36 states and union territories. Drawing on Right to Information (RTI) responses, parliamentary data, and official dashboards, it evaluates states on indicators including budgets, human resources, infrastructure, workload, and diversity.

Consumer Justice Report 2026: Assessing Capacity of Redressal Commissions in India (India Justice Report, March 2026).

Vacancies

The IJR 2026 report found that as of 2025, more than half the posts of presidents and members in state consumer commissions were vacant, severely undermining their functioning capacity. Only 10 state commissions had a sitting president for all five years between 2021 and 2025. The vacancy problem is compounded by a restrictive appointment criterion: only a sitting or retired High Court judge can serve as president of a State Commission, significantly narrowing the eligible pool.

At the district level, the situation is comparatively better, with most DCDRCs having filled president and member positions. However, staff vacancies at both state and district commissions doubled between 2021 and 2025.

Case pendency

Between 2010 and 2024, over 28.57 lakh cases were filed across all three tiers, reflecting substantial public reliance on the system. Despite improved disposal numbers after the pandemic with approximately 88.5% of the 7.64 lakh cases disposed of across state and district commissions total case pendency rose by 21% between 2020 and 2024, reaching over 5.15 lakh cases. As of January 2024, 5.43 lakh cases were pending across all commissions.

The annual Case Clearance Rate (CCR), which had historically remained above 100% meaning disposals exceeded fresh filings fell to 98% in 2024 for the first time, signalling that fresh filings are now officially outpacing case disposals. At least one in three cases in state commissions was pending for more than three years in 2025, far exceeding the statutory three-to-five-month disposal window prescribed by the 2019 Act.

Geographic disparities are significant. Tamil Nadu demonstrates relatively strong clearance rates, while Maharashtra records high filing volumes with low efficiency, resulting in substantial pendency. District commissions in major metros disposed of approximately 76% of cases between 2022 and early 2025, leaving a quarter pending.

Gender representation

The IJR 2026 report highlights a decline in women's representation within state commissions. The share of women among presidents and members across 14 responding SCDRCs fell from an average of 35% in 2021 to 23.2% in 2024, before recovering slightly to 29% in 2025.In 2024, only two states Delhi and Sikkim had a woman president in their state commission. Women presidents were appointed in only three of the 15 capital-city DCDRCs surveyed, and referrals to Lok Adalat have also been on a sharp decline since 2022.

Mediation and alternative dispute resolution

The 2019 Act formally incorporated mediation through dedicated consumer mediation cells attached to each commission. However, the IJR report found that mediation remains severely underutilized in practice. Across 23 states that provided data, only 134 cases were referred to mediation nationwide a figure that stands in stark contrast to the volume of cases filed. Referrals to Lok Adalat have similarly declined sharply since 2022. The report notes that while mediation offers a faster, less adversarial, and more cost-effective path to redress, structural and attitudinal barriers have prevented it from functioning as the system-decongesting mechanism envisaged by the legislature.

Budgets

Budget allocations to state commissions grew by 52% between 2021–22 and 2024–25, representing a positive trend in governmental commitment. However, the IJR found that SCDRCs have struggled to fully utilize available funds. In some cases, underutilization reflects structural bottlenecks such as the absence of sanctioned posts or delays in procurement, rather than a lack of need. Under the Consumer Welfare Fund, ₹38.68 crore was released in 2024–25 to support consumer awareness and education programmes.

INTERNATIONAL FORUM ,COMPARATIVE ANALYSIS

The United Nations Guidelines for Consumer Protection (UNGCP)

These guidelines and principles lay down the basic structure and highlight the main features of Consumer Protection Legislations, laws and statutes for the formulation of local and regional laws as well as ensuring international co-operation and co-ordination among other states and learning from the experiences faced by other states. The directives were initially taken up by the General Assembly in resolution 39/248 of 16th April, 1985 and later expanded by the Economic and social Council in resolution of 26 july 1999. Three Ad Hoc Meetings were held in total. The first meeting decided that the UNCTAD should initiate a consultation procedure on the review of the UNGACP. The Second Ad Hoc Expert Meeting on Consumer Protection discussed the Implementation Report and agreed on creating working groups that was brought to the table in the first meeting. The last meeting analysed the modalities report and other allied issues that were included in UNGCP. An agreement was decided upon among consumer experts and diplomatic commissions in Geneva. The International Consumer and Protection and Enforcement Network, led a few organisations under its banner.  

OECD

The OECD’s main motive is to make and spread policies that will elevate the economic, social and emotional well-being of people across the world. This platform provides a place in which all governments could function together to learn and seek solutions through experiences to standard, common issues. The body works with governments to comprehend all the factors that are bringing about these economical and other societal changes in consumer behaviours. The OECD challenges a wide spectrum of issues very essential for consumers, especially through its committee on Consumer Policy.

United Nations Conference on Trade and Development (UNCTAD)

This organization provides perks and benefits to developing countries more fairly and without bias. The organization also helps these countries deal with other bottlenecks of economic integration. Apart from technical guidance, UNCTAD also promotes sustainable development, investments, increases access to technical gadgets, promotes entrepreneurship and start-ups and cross- border transactions, protects people from abuse and fraud and ensures eco-friendly use of natural resources24. One very important factor to be taken into consideration is the work done towards achieving the goals and objectives set by the agenda to be achieved by 2030. Financial development is another task undertaken by them by joining forces with World Bank, International Monetary Fund, WTO and United Nations Development Programme. The organisation as of now, is serving 195 countries in all. Ibreo american Forum of Consumer Protection Agencies (FIAGC) ,it is a multinational platform developed to understand the public policy of consumer protection, instituted and formed by governments of Latin, America, Spain and Portugal. The objective of that body is to encourage co-operation and co-ordination among its members via sharing information and experiences in topics of common interest for better application and enforcement of consumer related policies.

Financial development is another task undertaken by them by joining forces with World Bank, International Monetary Fund, WTO and United Nations Development Programme. The organisation as of now, is serving 195 countries in all.  

EUROPEAN UNION

The European Policy on Consumer Protection introduced in 1975 established important consumer rights across Europe. Consumer protection was further strengthened through treaties such as the Maastricht Treaty and the Amsterdam Treaty, which focused on preventing misleading advertisements and ensuring product safety standards. Various organizations, including the National Council of Consumers and Users and the European Consumer Consultative Group, work to protect consumer interests, advise governments, and address consumer-related problems. Cross-border consumer complaints are handled by the European Consumer Centers (ECC), which assist consumers in resolving international disputes and related legal or communication issues. In the European Union, products must meet the quality, safety, and features promised by manufacturers, and producers can be held liable for defective or unsafe goods even without negligence. If the manufacturer cannot be identified, the distributor may be held responsible. Consumer disputes may be resolved either through courts or through Alternative Dispute Resolution (ADR), which is considered faster, cheaper, and more convenient. Under ADR procedures, parties submit documents and evidence before a neutral body conducts proceedings and helps the parties reach a settlement agreement.

Criticism and reform proposals

Academic and civil society researchers have highlighted a phenomenon described as a "justice threshold" many consumers avoid approaching commissions not because their grievance is insignificant, but because the system is perceived as distant, complex, and slow. Whether the dispute involves a small overcharge or a denied insurance claim, the perceived cost of navigating the system frequently outweighs the expected benefit, eroding trust in timely and accessible redress.

Proposed reforms include:

• Fast-track appointments — time-bound selection processes for presidents and members, with consideration of a dedicated consumer judiciary cadre to ensure continuity
• Mandatory case-flow management — introducing case-age benchmarks (6 months, 1 year, 2 years) with compulsory priority listing of long-pending matters
• Expanded ADR use — strengthening mediation cells and increasing Lok Adalat referrals to decongest adjudicatory commissions
• Infrastructure parity — establishing commissions in the remaining 90 districts currently without a DCDRC
• Gender diversity — adopting binding minimum representation requirements for women in presidential and membership role

REFRENCES

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Page created 2026-08-21  ·  Last updated 2026-08-21