MA Schedule Tenth : Amendment to Consumer Protection Act, 2019

Act

Summary

The Tenth Schedule of the Mediation Act, 2023, introduces significant amendments to the Consumer Protection Act, 2019. It omits clauses (25) and (26) from section 2 and replaces section 37 with new provisions for mediation. Section 37 mandates that disputes can be referred to mediation by various commissions, while Section 37A outlines the process for settlement through mediation, including the preparation of a settlement report by the mediator.

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Explanation using Example

Example 1: Mediation in a Dispute Over a Defective Product

Introduction: Sarah, a resident of Mumbai, purchased a new smartphone from a local electronics store. Within a week, she noticed that the phone had several defects, including a malfunctioning camera and battery issues. Sarah contacted the store for a replacement, but the store refused, citing their policy of no returns on electronic items.

Application: Sarah decided to file a complaint with the District Consumer Commission. During the proceedings, both Sarah and the store owner agreed to try mediation to resolve the dispute, as per Section 37 of the Consumer Protection Act, 2019, amended by the Mediation Act, 2023.

Outcome: The mediator facilitated discussions between Sarah and the store owner. They reached an agreement where the store agreed to replace the defective phone with a new one. The terms of this agreement were documented and signed by both parties, as required by Section 37A(1). The mediator then prepared a settlement report and forwarded it to the District Commission, fulfilling the requirements of Section 37A(2).

Conclusion: By opting for mediation, Sarah and the store owner avoided a lengthy legal process and reached a mutually satisfactory resolution. Compliance with the mediation agreement ensured that no further legal action was necessary.

Example 2: Failed Mediation in a Service Dispute

Introduction: Raj, a freelance graphic designer from Delhi, hired a local internet service provider (ISP) for a hi...

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