2. National Consumer Protection Council

Constitution of National Consumer Protection Council

• The National Consumer Protection Council (NCPC), also known as the Central Consumer Protection Council (CCPC), is a statutory advisory body established under the Consumer Protection Act, 2019 of India. It replaced the similar council formed under the Consumer Protection Act, 1986, with expanded roles.
• The council is constituted by the Central Government and chaired by the Union Minister in charge of the Department of Consumer Affairs.
• Its members consist of:
• Official and non-official members representing various interests connected with consumers.
• Experts and representatives from sectors linked with consumer affairs.
• The exact number of members is not fixed but must comprehensively represent diverse consumer interests.
• The council meets as and when necessary but must hold at least one meeting annually to review consumer protection policies and issues affecting consumers nationwide.

Functions of National Consumer Protection Council

The primary functions of the NCPC are:

1. Advisory Role:

• Advises the Central Government on the formulation and implementation of consumer protection policies and measures.

2. Promotion and Protection of Consumer Rights:

• Works to promote and protect consumer rights under the law.
• Reviews and recommends improvements on existing laws for better consumer protection.

3. Consumer Awareness and Education:

• Conducts and promotes awareness campaigns to educate consumers about their rights, fair trade practices, and grievance redressal mechanisms.

4. Coordination with State and District Councils:

• Facilitates coordination with State Consumer Protection Councils and District Consumer Protection Councils to ensure cohesive consumer protection efforts across the country.

5. Review of Consumer Grievance Redressal Systems:

• Evaluates the effectiveness of consumer dispute redressal agencies and suggests improvements.

6. Policy Recommendations:

• Recommends regulatory changes to address emerging consumer issues, including those related to digital markets and services.

National Consumer Protection Council in India

Levels of Consumer Protection Councils

The Consumer Protection Act, 2019 establishes consumer protection councils at three levels:

• Central Consumer Protection Council (CCPC):
• Operates at the national level.
• Advisory body to the Central Government.
• Chaired by the Union Minister in charge of Consumer Affairs.
• State Consumer Protection Councils (SCPC):
• Established in each State.
• Chaired by the Minister-in-charge of Consumer Affairs in the State.
• Advises the respective State Government on consumer protection issues.
• Holds at least two meetings annually.
• District Consumer Protection Councils (DCPC):
• Established in each district.
• Chaired by the District Collector.
• Ensures consumer protection at the district level and organizes consumer awareness activities.

Objectives of National and Other Consumer Protection Councils

• To promote and safeguard the interests and rights of consumers.
• To ensure consumer awareness about goods, services, and fair trade practices.
• To strengthen and monitor the grievance redressal framework.
• To advise respective governments regarding policy changes and implementation.

Important Case Studies Related to National Consumer Protection Council

1. National Insurance Company Ltd. vs Hindustan Safety Glass Works Ltd.

• Facts: The insurance company denied compensation for damages caused by heavy rain based on a condition that claims must be filed within 12 months.
• Judgment: The National Commission held that the claim was valid since the goods were insured at the time of loss. The insurance company was ordered to pay Rs. 21,05,803.89 with 9% interest per annum.

2. Karnataka Power Transmission Corporation (KPTC) vs Ashok Iron Works Pvt. Ltd.

• Facts: KPTC delayed electricity supply despite confirmation and payment, causing losses.
• Issues: Whether the supply of electricity to a private company was covered under Consumer Protection Act and if the company qualifies as a consumer.
• Judgment: The Supreme Court ruled that a private company is a consumer under the Act, and supply of electricity is a service covered by the Act. The case was sent back for retrial.

Significance

These cases reflect the Council's and Act's role in protecting consumer interests in insurance claims and utility services, reinforcing consumer rights to seek redressal.

Conclusion

• The National Consumer Protection Council (NCPC) serves as a crucial advisory and promotional body under the Consumer Protection Act, 2019 to safeguard consumer interests across India.
• Constituted under the leadership of the Union Minister of Consumer Affairs, and comprising experts and representatives from various sectors, the council advises the Central Government on effective consumer protection policies.
• Alongside State and District Councils, the NCPC plays a vital role in advocating consumer rights, promoting awareness, reviewing grievance mechanisms, and recommending legislative reforms.
• Its legal foundation and advisory functions have been instrumental in shaping consumer policies in dynamic markets, including addressing modern challenges in digital commerce. -
• Landmark cases like National Insurance Company Ltd. vs Hindustan Safety Glass Works Ltd. and KPTC vs Ashok Iron Works reflect the practical impact of consumer protection frameworks the NCPC supports.
• In conclusion, the NCPC strengthens India’s consumer protection architecture by ensuring a balanced, responsive, and effective system to uphold consumer rights and interests in a complex economy.