Q. I understand that the Consumer Protection Act (CPA) provides for class action complaints. Who can initiate class action complaints under CPA? Is there any special procedure for filing class action complaints? Can I file a class action complaint even if I am not a consumer?
Purnima Rao, Andheri (West) A.
There are two types of class action complaints provided for in CPA. The first type is to be filed before the appropriate consumer commission (commonly known as consumer court). The second type of complaint is to be filed before the Central Consumer Protection Authority (CCPA), Delhi. Now let us see who can initiate a Class Action complaint on these two different platforms.
In the consumer commission, one or more “consumers” can file a class action complaint for the benefit of or on behalf of the entire class of consumers. In CCPA, not only the “consumer” but “any person” can file a class action complaint. You need not be the “consumer”. Even CCPA itself can suo motu initiate class action to protect the interest of consumers as a class. Besides this, the state government, the Central government, and any registered voluntary consumer organisation can also file “class action” complaints before any consumer commission or before the CCPA.
In CCPA only complaints where consumers get affected “as a class” are entertained and no individual grievance will be entertained by the CCPA. The class action complaints in CCPA can only be with respect to violation of any consumer right, adoption of unfair trade practice, or false or misleading advertisement, which are prejudicial to the interest of consumers “as a class”, whilst class action in consumer commissions have no such restriction and can be even in respect of deficiency in service, supply of defective or hazardous products, unfair trade practice, etc which affect several consumers.
In consumer commission class action complaint filed by one or more consumers has to be pursued by these consumers right till the end and the onus of proving the allegations by leading the evidence rests with these consumers who have complained on behalf of a class of consumers whereas in CCPA, the person or the consumer has to only bring to the notice of the CCPA that there is either violation of consumer rights or adoption of unfair trade practice or there is false or misleading advertisement affecting consumers as a class with some evidence to make out a prima facie case.
On receipt of such a complaint, the CCPA will conduct a preliminary inquiry to examine if there exists a prima facie case. If the CCPA is satisfied that there exists a prima facie case, then it will order further investigation. On receipt of the investigation report, the CCPA will give its final decision. However, while doing so, the CCPA gives adequate opportunity to the party against whom such a complaint is lodged to make its submissions by producing necessary evidence.
For any class action complaint in the Consumer Commission, a fee is payable depending on the total consideration paid by numerous consumers. This fee can be a maximum of Rs 7,500 plus GST. However, no such fee is payable if the complaint is to be filed before the CCPA. For filing the class action complaint in CCPA, there is no pecuniary limit whereas in consumer commissions if the class action complaint is of the total consideration paid up to Rs 50 lakh, the complaint has to be filed in the appropriate district commission. If the consideration paid exceeds Rs 50 lakh but is less than Rs 2 crore, then such class action complaint has to be filed at the appropriate state Commission, and where the consideration paid exceeds Rs2 crore such complaint is required to be filed before the National Commission in Delhi.
Class action complaints filed in consumer commission by one or more consumers are subject to the permission to be granted by such commission. If the commission is satisfied with the bona fides of the complainants and the complaint then only such complaint can be treated as a “class action” complaint. Thereafter the complainants will have to give public notice, at their own cost, as per Order 1, Rule 8 of the First Schedule of Civil Procedure Code inviting any other consumers affected by such complaint.
Adv Shirish V Deshpande is the Chairman of Mumbai Grahak Panchayat. Queries may be sent to shirish50@yahoo.com