Q.Under which consumer right does a business firm set up consumer grievance cell?
Concept understanding — Consumer Grievance Redressal
Imagine you buy a new phone, and within a week the screen freezes. You take it back to the shop, but the shopkeeper shrugs and says, "Not my problem." That feeling of helplessness — that is exactly the problem Consumer Grievance Redressal is designed to solve.
At its simplest, a grievance is a complaint — a feeling of being wronged or cheated. Redressal means getting that wrong fixed. So Consumer Grievance Redressal is the entire system of laws, courts, and procedures that lets a buyer (you) get a fair remedy when a seller or manufacturer cheats, overcharges, sells a defective product, or provides poor service.
The core idea is that the consumer is not helpless. The law gives you a right to be heard and a right to seek redressal. Without this system, a marketplace would be a jungle where the seller always wins.
The NCERT textbook (Class 10 Economics, Chapter 5) explains this under the Consumer Movement in India. It says that the government set up a three-tier quasi-judicial machinery to handle complaints — like a special set of courts just for consumer problems. This is called the Consumer Disputes Redressal Agencies, commonly known as Consumer Courts.
Here is how the system works, from the smallest problem to the biggest:
- District Consumer Disputes Redressal Forum (DCDRF): For complaints where the value of goods or services plus the compensation claimed is up to ₹1 crore. You file this at the district level.
- State Consumer Disputes Redressal Commission (SCDRC): For claims between ₹1 crore and ₹10 crore. This is the state-level appeal court.
- National Consumer Disputes Redressal Commission (NCDRC): For claims above ₹10 crore. This is the highest consumer court in India, located in New Delhi.
If you are still unhappy after the NCDRC, you can appeal to the Supreme Court of India.
You do not need a lawyer to file a case in a consumer court. The process is designed to be simple, cheap, and fast — much faster than regular civil courts. You can file a complaint on a plain piece of paper, or even online in many states.
Why does this matter for you as a student? Because every day you are a consumer — buying a pen, a bus ticket, a meal, or a phone. Knowing that a system exists to protect you changes your behaviour. You start asking for a bill, checking the expiry date, and demanding a warranty. That confidence is what makes a market fair.
The textbook also lists the six rights of a consumer, and the right to redressal is one of them. The others are: right to safety, right to be informed, right to choose, right to be heard, and right to consumer education. All six work together, but redressal is the one that actually fixes the problem after it has happened.
A quick example to tie it together: You order a ₹5,000 jacket online. It arrives torn. You email the company, they ignore you. You can:
- Write a formal complaint to the company (first step).
- If they don't respond, file a case at the District Consumer Forum (since the value is under ₹1 crore).
- The forum will hear both sides, and if you are right, order the company to replace the jacket or refund your money, plus possibly pay compensation for the harassment.
That is consumer grievance redressal in action — turning your helplessness into a legal right.
A business firm sets up a consumer grievance cell under the Right to be Heard (also called the Right to Representation). This right ensures that consumers' complaints and concerns will be considered at the appropriate forum.
The Right to be Heard means that consumers have the right to voice their dissatisfaction and have their grievances addressed. By setting up a grievance cell, the firm provides a direct channel for consumers to be heard, which is a practical implementation of this right.
Other related rights include the Right to Safety, Right to be Informed, and Right to Seek Redressal, but the grievance cell specifically fulfills the Right to be Heard.
A business firm sets up a consumer grievance cell under the Right to be Heard, ensuring consumers can voice their complaints and have them addressed.
Setting up a consumer grievance cell by a business firm is an exercise of the Right to be Heard — one of the six fundamental consumer rights recognised under the Consumer Protection Act, 2019.
The Consumer Protection Act, 2019, grants every consumer six core rights. Among them, the Right to be Heard ensures that consumers’ complaints and grievances will receive due attention and consideration. This right is not just about filing a complaint; it is about the assurance that the business will listen and respond.
When a business firm voluntarily establishes a consumer grievance cell, it is putting this right into practice. The cell acts as a dedicated channel through which consumers can voice their dissatisfaction, and the firm is expected to address those concerns fairly and promptly. This is a proactive step by the business to honour the consumer’s right to be heard, rather than forcing the consumer to approach external forums like the District Consumer Disputes Redressal Commission.
The other five consumer rights are: Right to Safety, Right to be Informed, Right to Choose, Right to Seek Redressal, and Right to Consumer Education. The Right to be Heard is distinct because it focuses on the process of listening, not just the outcome.
The Right to be Heard is also sometimes called the Right to Representation. It means that consumers have the right to express their grievances and have them considered at appropriate forums — including the firm’s own grievance cell.
In practice, many companies now set up such cells as part of their customer service or complaints department. This is a direct implementation of the Right to be Heard, because it gives consumers a platform to be heard before the problem escalates. The existence of a grievance cell does not replace the consumer’s right to approach a consumer court, but it is a first step that the business itself provides.
In short, a business firm sets up a consumer grievance cell under the Right to be Heard, ensuring that consumers can voice their complaints and receive a timely response from the company itself.
Showing the 12 most recent of 25 on this concept.
- CBSE 2026Set MARCH1 markQ.Name any one redressal agency under the Consumer Protection Act.
›Reveal solutionSolution
The Consumer Protection Act provides a three-tier redressal machinery: the District Commission, the State Commission and the National Commission. Naming any one answers the question.
✓Final answerDistrict Commission is a redressal agency under the Consumer Protection Act.
To provide simple and quick relief to consumers, the Act sets up a three-tier system of quasi-judicial agencies: (1) District Commission (District Forum) at the district level, (2) State Commission at the state level, and (3) National Commission at the national level. A consumer files a complaint at the level appropriate to the value of the goods/services and the compensation claimed, and can appeal to the next higher level. Any one of these three is a correct answer. This redressal machinery is a central topic in the consumer protection unit of Karnataka 2nd PUC Business Studies.
- CBSE 2026Set ANNUAL1 markQ.Who can file a complaint under the Consumer Protection Act?
›Reveal solutionSolution
A complaint under the Consumer Protection Act can be filed by a consumer, a registered consumer organisation, the Government, or a deceased consumer's legal heir.
Under the Consumer Protection Act, the following persons are eligible to file a complaint:
- Any consumer who has bought goods or availed services (or his/her legal heir or representative in case the consumer has died).
- Any registered consumer association or voluntary consumer organisation.
- The Central Government or any State Government.
- One or more consumers, on behalf of numerous consumers having the same interest.
Thus not only the affected consumer but also these other parties can approach the consumer forums for redressal.
✓Final answerA complaint can be filed by a consumer (or the legal heir/representative of a deceased consumer), any registered consumers' association, the Central or State Government, or several consumers having a common interest.
- CBSE 2026Set ANNUAL1 markMCQQ.The levels of consumer's council are:(a) One(b) Two(c) Three(d) Four
›Reveal solutionSolution
There are three levels of consumer councils/commissions.
The consumer grievance redressal machinery is a three-tier system: the District Commission (district level), the State Commission (state level) and the National Commission (national level). A consumer files his complaint at the level fixed by the value of goods/services and compensation claimed. Hence there are three levels.
✓Final answerThree.
- CBSE 2025Set 66/2/11 markMCQQ.As per the Consumer Protection Act, 2019 which of the following statement is correct ? (A) In case the aggrieved party is not satisfied with the order of the District Commission, he can directly appeal before the National Commission. (B) In case the aggrieved party is not satisfied with the order of the District Commission, he can directly appeal before the Supreme Court. (C) In case the aggrieved party is not satisfied with the order of the State Commission, he can directly appeal before the Supreme Court. (D) In case the aggrieved party is not satisfied with the order of the National Commission, he can appeal before the Supreme Court.
›Reveal solutionSolution
Under the Consumer Protection Act, 2019, appeals move stepwise: District Commission → State Commission → National Commission → Supreme Court. Only the National Commission’s order can be appealed directly to the Supreme Court.
The Consumer Protection Act, 2019, replaced the older 1986 law to make grievance redressal faster and more accessible. It set up a three-tier quasi-judicial machinery: the District Commission, the State Commission, and the National Commission. Each handles complaints based on the value of goods or services involved. But what happens when a party is unhappy with a decision? The Act lays down a clear ladder of appeals — you cannot skip a rung.
Let’s look at the options one by one.
Option (A) says that if someone is dissatisfied with the District Commission’s order, they can appeal directly to the National Commission. That is incorrect. The Act states that an appeal against a District Commission order lies with the State Commission — not the National Commission. You must go step by step.
Option (B) suggests a direct appeal from the District Commission to the Supreme Court. That is also wrong. The Supreme Court is the highest level; you cannot jump straight to it from the bottom tier.
Option (C) claims that an appeal from the State Commission can go directly to the Supreme Court. Again, no. The correct route is from the State Commission to the National Commission. Only after the National Commission’s order can a party approach the Supreme Court.
Option (D) says that if a party is not satisfied with the National Commission’s order, they can appeal before the Supreme Court. This is exactly what the Act provides. Section 67 of the Consumer Protection Act, 2019, allows any person aggrieved by an order of the National Commission to file an appeal to the Supreme Court within thirty days from the date of the order.
ImportantThe appeal hierarchy under the Consumer Protection Act, 2019, is strictly sequential: District Commission → State Commission → National Commission → Supreme Court. No intermediate level can be skipped.
So the only correct statement among the four is that an appeal lies from the National Commission to the Supreme Court. The other three options describe shortcuts that the law does not permit.
✓Final answerIn short, under the Consumer Protection Act, 2019, only the order of the National Commission can be appealed directly to the Supreme Court — making option (D) the correct choice.
- CBSE 2025Set ANNUAL1 markMCQQ.Consumer Protection Act is effective in India from (A) 1986 (B) 1987 (C) 1988 (D) None of these
›Reveal solutionSolution
The Consumer Protection Act came into force in 1986, setting up a three-tier redressal system and codifying consumer rights; a new Consumer Protection Act was passed in 2019, but the classic reference in this syllabus is 1986.
The 1986 Act protected consumers against defective goods, deficient services and unfair trade practices and created District, State and National redressal agencies. It was the landmark consumer-protection law for decades and is the answer intended here. (Students should note that the 2019 Act has since replaced it.)
✓Final answer(A) 1986.
- CBSE 2025Set ANNUAL1 markMCQQ.Under the Consumer Protection Act, complainant means (A) Consumer (B) State Government (C) Central Government (D) All of these
›Reveal solutionSolution
Under the Consumer Protection Act a 'complainant' includes a consumer, a registered consumers' association, the Central Government and the State Government (and legal heirs of a consumer), so the answer is all of these.
The Act deliberately defines complainant widely so that disputes can be raised not only by the affected consumer but also by the government and consumer organisations acting in the public interest. Since the consumer, the State Government and the Central Government are all covered, the correct answer is 'all of these'.
✓Final answer(D) All of these.
- CBSE 2025Set ANNUAL1 markMCQQ.The machinery for settlement of consumer disputes is (A) One-tier (B) Three-tier (C) Two-tier (D) None of these
›Reveal solutionSolution
The Consumer Protection Act provides a three-tier redressal machinery: the District Commission, the State Commission and the National Commission, with appeals moving upward.
- District Commission — handles smaller-value claims at the district level.
- State Commission — higher-value claims and appeals from the District Commission.
- National Commission — the highest value claims and appeals from the State Commission.
This three-level structure gives consumers a quick and graded redressal system.
✓Final answer(B) Three-tier.
- CBSE 2025Set ANNUAL1 markQ.Answer in one word/sentence: Consumers grievance are heard on how many levels?
›Reveal solutionSolution
Consumer grievances are heard at three levels.
The consumer redressal system is a three-tier machinery: the District Commission (district level), the State Commission (state level) and the National Commission (national level). A consumer files his complaint at the level decided by the value of goods/services and compensation claimed. Hence grievances are heard on three levels.
✓Final answerThree levels (District, State and National Commissions).
- CBSE 2024Set MARCH1 markQ.If the complainant is not satisfied by the judgement of District Level Forum, then to whom should he appeal for reconsideration and within what period?
›Reveal solutionSolution
Appeal to the State Commission within 30 days.
Under the consumer redressal machinery, if a complainant is not satisfied with the decision of the District Forum, he can appeal to the next higher body, the State Commission, within 30 days from the date of the order. (Similarly, an appeal against the State Commission lies with the National Commission, and against the National Commission with the Supreme Court, each within the prescribed period.)
✓Final answerAppeal to the State Commission, within 30 days of the District Forum's order.
- CBSE 2024Set ANNUAL1 markMCQQ.Redressal Agencies under the Consumer Protection Act are (A) National commission (B) State commission (C) District forum (D) All of these
›Reveal solutionSolution
Redressal under the Act is through a three-tier system of District, State and National commissions, so the answer is (D) All of these.
To settle consumer disputes, the Consumer Protection Act sets up a three-tier quasi-judicial machinery: the District Commission (formerly District Forum) at the district level, the State Commission at the state level, and the National Commission at the national level. A consumer approaches the level matching the value of the claim and can appeal to the higher level. Because all three are redressal agencies, the inclusive option is correct.
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(A), (B) and (C) are each only one tier of the three-tier system.
✓Final answer(D) All of these — National, State and District commissions are the redressal agencies.
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- CBSE 2024Set ANNUAL1 markQ.Fill in the blank: Consumer grivences are redressed by the ______ tire machinery.
›Reveal solutionSolution
The blank is filled by three (3): consumer grievances are redressed by the three-tier machinery.
To give consumers simple and quick relief, the Consumer Protection Act sets up a three-tier quasi-judicial redressal machinery:
- District Commission — for smaller-value complaints, filed at the district level.
- State Commission — for medium-value complaints and appeals from the District Commission.
- National Commission — for the highest-value complaints and appeals from the State Commission.
A consumer approaches the appropriate level according to the value of goods/services and compensation claimed. Hence the machinery is a three-tier one.
✓Final answerThree (3).
- CBSE 2024Set ANNUAL1 markQ.Write answer in one sentence: How many levels are there in consumer forum?
›Reveal solutionSolution
There are three levels of consumer forums.
Under the consumer protection machinery, a three-tier redressal system exists: the District Consumer Disputes Redressal Commission (district level), the State Commission (state level) and the National Commission (national level). A consumer files a complaint at the level decided by the value of the goods/services and compensation claimed.
✓Final answerThree levels (District, State and National Commissions).
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