Question : What is the purpose of the three-tier system under the Consumer Protection Act?

 

Option 1: To establish consumer courts at three levels for grievance redressal

Option 2: To provide discounts to consumers at three different stages of purchase

Option 3: To create a monopoly for consumer goods and services

Option 4: To regulate the prices of essential commodities

Correct Answer: To establish consumer courts at three levels for grievance redressal

Solution : The correct answer is (a) To establish consumer courts at three levels for grievance redressal.

The three-tier system under the Consumer Protection Act refers to the establishment of consumer courts or consumer dispute redressal commissions at three different levels for the redressal of consumer grievances. The purpose of this three-tier system is to provide accessible and efficient mechanisms for consumers to seek redressal and compensation for any unfair trade practices, product defects, or deficient services.

The three tiers of consumer courts are as follows:

1. District Consumer Disputes Redressal Commission (District Forum): This is the first level of consumer courts established at the district level. It handles consumer complaints involving claims up to a specified value.

2. State Consumer Disputes Redressal Commission (State Commission): This is the second level of consumer courts established at the state level. It handles consumer complaints involving claims exceeding the value specified by the District Forum but below a higher threshold.

3. National Consumer Disputes Redressal Commission (National Commission): This is the highest level of consumer courts established at the national level. It handles consumer complaints involving claims exceeding the value specified by the State Commission.

The three-tier system ensures that consumers have accessible and specialized forums to address their grievances, seek compensation, and receive timely resolution of their complaints. It provides a hierarchical structure for dispute resolution, allowing consumers to escalate their complaints to higher levels if necessary.