Page 1 - Lesson Note 3

SAI INTERNATIONAL SCHOOL
CLASS-12TH

BUSINESS STUDIES
Chapter 12: Consumer Protection
Topic: Redressal Agencies
(Lesson Note 50)

REDRESSAL AGENCIES UNDER THE CONSUMER PROTECTION ACT

For the redressal of consumer grievances, the Consumer Protection Act provides for setting up of

a three- tier enforcement machinery at the District, State, and the National levels, known as the
District Consumer Dispute Redressal Forum, State Consumer Disputes Redressal Commission,

and the National Consumer Disputes Redressal Commission. They are briefly referred to as the
‘District Forum’, ‘State Commission’, and the ‘National Commission’, respectively. While the

National Commission is set up by the Central Government, the State Commissions and the

District Forums are set up, in each State and District, respectively, by the State Government
concerned. The Figure on redressal agencies shows the hierarchical structure of this three-tire

machinery. Before studying the set-up and functioning of these redressal agencies let see how the
Consumer Protection Act defines a consumer and who can file a complaint under the Consumer

Protection Act.

Consumer: A ‘consumer’ is generally understood as a person who uses or consumes goods or
avails of any service. Under the Consumer Protection Act, a consumer is defined as:

(a) Any person who buys any goods for a consideration, which has been paid or promised, or

partly paid and partly promised, or under any scheme of deferred payment. It includes any user
of such goods, when such use is made with the approval of the buyer, but does not include a

person who obtains goods for re-sale or any commercial purpose.

(b) Any person 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 services when such services are availed of with the approval of the

person concerned, but does not include a person who avails of such services for any commercial
purpose.