Lawyer Monthly Magazine - February 2020 Edition

• Amongst the various powers held by the Central Authority, the most relevant ones are: a) Inquire into a matter, suo motu or on a complaint received or on direction of Central Government; b) File Complaints or intervene in any proceedings before District or State or National Commission; c) After a preliminary inquiry, the Central Authority will further have a right to refer the matter for investigation or refer the same to some other competent Regulator established under any other law for the time being in force; d) Recall of goods, withdrawal of services which are dangerous or unsafe, reimbursement of prices of goods or services etc.; e) Issue directions and penalties against false ormisleading advertisements. Filing of a complaint: • The CP Act shall allow the complainant to file a complaint in a Commission, within local limits of where the complainant resides or personally works for gain. • It shall allow the complaints to be filed electronically and also permit hearing or examination of parties through video conferencing in certain circumstances. • The jurisdiction of Commissions to entertain complaints shall be enhanced; see below: For any clarification or further information, please contact: Varun Pareek, Partner: E: varun.pareek@clasislaw.com | Sidhant Pandita, Associate: E: sidhant.pandita@clasislaw.com Regulatory Update of the Month By Clasis Law 19 FEB 2020 | WWW.LAWYER-MONTHLY.COM Alternate Dispute Resolution mechanism: • The CP Act provides for the establishment of a Consumer Mediation Cell at each level i.e. District, State and National Commission. • The Commissions can, at any stage of the proceedings, direct the parties to have their matter settled by mediation, where it appears that there exists a possibility of resolution of the dispute through mediation. • Where the matter has been settled by mediation, the District, State or National Commission shall duly record such settlement in its order. If the mediation fails, the Commission shall then proceed to hear the matter. The CP Act widens the scope of protection of a consumer. The CP Act is certainly progressive in nature and has been drafted keeping in mind the radical changes in the consumer base and consumer platforms. However, the successful effectiveness and speediness of the functions under the new CP Act will only be seen over the course of time. Complainant: • The definition of “Complainant” shall extend to parents or legal guardians of a minor who is a consumer. COMMISSION JURISDICTION District Commission State Commission National Commission Where the value of the goods or services paid as consideration does not exceed one crore rupees (≈GBP 107,500/USD 140,400). Where the value of the goods or services paid as consideration, ex- ceeds rupees one crore, but does not exceed rupees ten crore (≈ GBP 1,075,800/USD 1,404,600) Where the value of the goods or services paid as consideration exceeds rupees ten crore.