As per the Consumer Protection Act, 1986 a complaint can be filed in the District Consumer Disputes Redressal Forum if the value of the claim is up to:
- A.Rs. 5 lakh
- B.Rs. 15 lakh
- C.Rs. 20 lakh
- D.Rs. 10 lakh
Correct answer
Explanation
The correct answer is C, twenty lakh rupees. The Consumer Protection Act, 1986 created a three-tier machinery and fixed a money limit for each tier: the district forum could hear a complaint where the value of the goods or services and the compensation claimed did not exceed twenty lakh rupees, the state commission took claims above that limit up to one crore rupees, and the national commission those above one crore. Options A, B and D are wrong because five, fifteen and ten lakh rupees were never the jurisdiction of the district forum under that Act; they are offered because the limits were raised over the years and a candidate who remembers only that the figure is in lakhs may pick any of them. Note that the Act of 1986 has since been replaced by the Consumer Protection Act, 2019, under which the three bodies are called Commissions and their pecuniary limits are prescribed by the Central Government.
Read the full article: Consumer Protection and Competition Law: Notes and PYQs
Practice Questions
View allWhich of the following is NOT an element of the Competition Act 2002?
- A.Prohibition of anti-competitive agreements
- B.Regulation of combination
- C.Abuse of dominant position
- D.Prohibition of trade
Show answer
The Competition Act, 2002 rests on three pillars, and freedom of trade is the very thing it protects, so no provision of it prohibits trade; on the contrary, the Act opens by stating that it seeks to ensure freedom of trade carried on by other participants in markets in India.
Read the full explanation →Which Act governs consumer protection in India at present?
- A.The Consumer Protection Act, 1986
- B.The Consumer Protection Act, 2019
- C.The Monopolies and Restrictive Trade Practices Act, 1969
- D.The Essential Commodities Act, 1955
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The new Act widened the definition of a consumer to cover online, teleshopping and multi-level marketing purchases, created the Central Consumer Protection Authority, introduced product liability and rules for electronic commerce, allowed mediation and e-filing, and renamed the three redressal bodies as Commissions.
Read the full explanation →The Central Consumer Protection Authority (CCPA) was established under which law?
- A.The Competition Act, 2002
- B.The Consumer Protection Act, 2019
- C.The Legal Metrology Act, 2009
- D.The Bureau of Indian Standards Act, 2016
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The CCPA is a regulator created by that Act to protect the interests of consumers as a class, and not merely to decide an individual complaint.
Read the full explanation →Which is the apex body in the three-tier consumer dispute redressal machinery in India?
- A.The District Commission
- B.The State Commission
- C.The National Commission
- D.The Supreme Court
Show answer
It is headed by a sitting or retired judge of the Supreme Court, hears complaints above the pecuniary limit prescribed for the State Commissions, and also hears appeals from them.
Read the full explanation →National Consumer Day is observed in India on which date?
- A.15 March
- B.5 June
- C.24 December
- D.14 November
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National Consumer Day marks the day on which the Consumer Protection Act, 1986 received the assent of the President of India, and it is observed every year with campaigns on consumer rights and on the machinery available for redressal.
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