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Introduction: The Ministry of Consumer Affairs, Food and Public Distribution has issued a notification on August 17, 2023, amending the Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020. The amendment introduces changes to the fee structure applicable to consumer disputes, based on the value of goods or services paid as consideration. This amendment aims to streamline the fee assessment process and ensure fair representation for consumers seeking dispute resolution.

Analysis: The Consumer Protection Act, 2019, empowers the Central Government to make rules for the functioning of Consumer Disputes Redressal Commissions. The latest amendment focuses on refining the fee structure, which is an essential aspect of the consumer dispute resolution process. The new fee table categorizes the fees payable based on the value of goods or services paid, making the fee assessment more transparent and proportionate to the consumer’s financial involvement.

Key Changes in the Amendment:

1. Revised Fee Structure: The amendment introduces a revised fee structure, categorized according to the value of goods or services paid as consideration.

2. Transparent Gradation: The fee structure gradation ensures that the fee payable aligns with the value of the consumer’s transaction, preventing disproportionate charges.

3. Incentivizing Dispute Resolution: By exempting disputes involving a value of up to Rupees Five Lakh from any fee, the amendment encourages consumers to seek resolution for smaller disputes without financial barriers.

4. Progressive Fee Scale: As the value of the goods or services paid increases, the fee also increases in a step-wise manner.

Conclusion: The Ministry’s amendment to the Consumer Disputes Redressal Commissions Rules, 2020, reflects a commitment to improving consumer access to justice. By introducing a transparent and progressive fee structure, the amendment seeks to ensure that the financial burden of seeking dispute resolution aligns with the consumer’s stake in the matter. This development is in line with the broader goal of the Consumer Protection Act, 2019, which aims to safeguard consumer rights and provide effective mechanisms for dispute resolution. As the rules come into force, they are expected to contribute to a more equitable and consumer-centric approach to resolving disputes, ultimately promoting consumer trust and confidence in the marketplace.

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MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(Department of Consumer Affairs)
NOTIFICATION
New Delhi, the 17th August, 2023

G.S.R. 606(E).In exercise of the powers conferred by sub-section(1) and clauses (q) and (zj) of sub-section (2) of section 101 of the Consumer Protection Act, 2019 (35 of 2019), the Central Government hereby makes the following rules further to amend the Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020, namely:-

1. (1) These rules may be called the Consumer Protection (Consumer Disputes Redressal Commissions) (Amendment) Rules, 2023.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020, in rule 7, in sub-rule (2), for the Table, the following Table shall be substituted, namely:-

“TABLE

Sl. No. Value of goods or services paid as consideration Amount of fee payable
(1) (2) (3)
(1) Upto Rupees Five Lakh Nil
(2) Above Rupees Five Lakh and upto Rupees Ten Lakh Rs. 200
(3) Above Rupees Ten Lakh and upto Rupees Twenty Lakh Rs. 400
(4) Above Rupees Twenty Lakh and upto Rupees Fifty Lakh Rs. 1000
(5) Above Rupees Fifty Lakh and upto Rupees One Crore Rs. 2000
(6) Above Rupees One Crore and upto Rupees Two Crore Rs. 2500
(7) Above Rupees Two Crore and upto Rupees Four Crore Rs. 3000
(8) Above Rupees Four Crore and upto Rupees Six Crore Rs. 4000
(9) Above Rupees Six Crore and upto Rupees Eight Crore Rs. 5000
(10) Above Rupees Eight Crore and upto Rupees Ten Crore Rs. 6000
(11) Above Rupees Ten Crore Rs. 7500”.

[F. No. J-10/6/2018-CPU(Pt.1)]

ANUPAM MISHRA, Jt. Secy.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) vide number G.S.R.448(E), dated the 15th July, 2020 and was last amended vide notification number G.S.R. 892(E), dated the 21st December, 2022.

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