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Q. From your last week’s column, I noted that Consumer Commissions can entertain Class Action complaints which are different from Joint or Group Action complaints. I understand that even the Central Consumer Protection Authority (CCPA) can entertain Class Action complaints. Is it true? If so, then what is the difference between the Class Action complaint before the CCPA and Consumer Co m mi - ssions? In which matters CCPA can entertain Class Action Complaints? — Mangala Gadgil, Andheri (West)

A. It is true that the Central Consumer Protection Authority (CCPA) can also entertain Class Action complaints. However, there is some important difference between the Class Action complaints to be entertained or initiated by CCPA and the Class Action complaints to be filed before Consumer Commissions. CCPA is empowered under Sec 17 of the Consumer Protection Act, 2019 (CPA) to entertain class action complaints.

This provision reads as under: “Complaints to authorities: A complaint relating to violation of consumer rights or unfair trade practice or false or misleading advertisements, which are prejudicial to the interest of consumers as a class, may be forwarded either in writing or in electronic mode, to any of the authorities, namely, the District Collector or the Commissioner of regional office or the Central Authority.”

Careful reading of this provision will show that (a) there is no mention that the Complaint has to be made by “the consumer” or any consumer association. It means that even any person, who is not the consumer can make a complain to the CCPA. In such case he acts more as an informer. (b) Complaint has to be in relation to violation of consumer rights or unfair trade practice or false or misleading advertisements and nothing beyond that, (c) it should be prejudicial to the interest of “consumers as a class”.

From this it becomes clear that CCPA can handle complaints only of class action, in the sense where any act or omission of the party impacts consumers “as a class”. It is also significant to note that no fee is payable when one makes a complaint to the CCPA whereas in Consumer Commissions, fee is payable while filing the Complaint beyond a threshold of Rs 5 lakhs. Further, it is important to note that the CCPA is not required to give any public notice to all affected consumers under Order 1, Rule 8 of the Civil Procedure Code unlike the one required in Consumer Commissions.

In class action proceedings by CCPA, the focus is more on the party who is accused of violating consumer rights or adopting unfair trade practice or making false/misleading advertisements. If the allegation of complaint is established, the CCPA is empowered to penalize the erring party besides, of course, providing necessary reliefs to concerned consumers like refund of price, recall/replacement of product etc. Most importantly, CCPA has also powers to initiate action on its own ( suo motu). In the class action complaints before any Consumer Commission, the complaint is subject to the permission by the concerned Consumer Commission.

Further, the procedure under Order 1, Rule 8 including public notice has to be followed by the Complainant. This gives right to other consumers who are affected with such complaint, to intervene in the matter and file their say. The decision in such class action complaint is binding on consumers involved in the matter even if they are not before the Consumer Commission after the Public Notice. In the Consumer Commission the onus of proving the case lies squarely on the complainant/consumers whereas in case of complaints before the CCPA, the onus is not on the complainant.

The CCPA is mandated to investigate the complaint and establish the case against the party. For this purpose, CCPA is assisted by an Investigation wing which has powers to conduct inquiry, investigation and call for records/documents for inspection etc. It is the CCPA and not the Complainant which has to establish its case after proper investigation and after hearing the party against whom the complaint is made. Thus, to summarize, CCPA can deal with complaints only where interest of consumers “as a class” is involved and that when there is either a violation of consumer right or adoption of unfair trade practice or there is a false or misleading ads.

(Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: shirish50@yahoo.com)