1 markMCQSection A

Read the following statements carefully : Statement - I : Consumers should get together and form themselves into consumer associations for protection and promotion of their interests. Statement - II : The Consumer Protection Act provides for setting up a two-tier enforcement machinery for the redressal of consumer grievances. With reference to given statements, choose the correct alternative from the following :

Q: Read the following statements carefully : Statement - I : Consumers should get together and form themselves into consumer associations for protection and promotion of their interests. Statement - II : The Consumer Protection Act provides for setting up a two-tier enforcement machinery for the redressal of consumer grievances. With reference to given statements, choose the correct alternative from the following :

**Correct option: (C) Statement I is true, Statement II is false.** **Why** - **Statement I is TRUE:** Forming consumer associations to protect and promote consumer interests is a recognised way of protecting consumers (self-help through consumer organisations and NGOs). - **Statement II is FALSE:** The Consumer Protection Act provides for a **three-tier** quasi-judicial redressal machinery — District Commission, State Commission and National Commission — not a two-tier one.

Consumer Protection

Consumer Protection Machinery

Options

(A)Both the statements are true.

(B)Both the statements are false.

(C)Statement I is true, Statement II is false.

(D)Statement I is false, Statement II is true.

Official Answer

Correct option: (C) Statement I is true, Statement II is false.

Why

Statement I is TRUE: Forming consumer associations to protect and promote consumer interests is a recognised way of protecting consumers (self-help through consumer organisations and NGOs).
Statement II is FALSE: The Consumer Protection Act provides for a three-tier quasi-judicial redressal machinery — District Commission, State Commission and National Commission — not a two-tier one.

consumer protection actthree-tier redressal machinerydistrict commissionstate commissionnational commissionconsumer associationsconsumer grievancesmeans of consumer protection

Marking Scheme

11 mark for selecting (C) Statement I is true, Statement II is false.
2Justification must note the redressal machinery is three-tier (District, State, National Commission), not two-tier.

Hint

Count the tiers of the redressal machinery under the Act — is it two or three?

Quick Oral Answer

Statement I is true — consumer associations protect consumer interests; Statement II is false because the Act's redressal machinery is three-tier, not two-tier.

Analysis & Explanation

A statement-evaluation MCQ testing precise recall of how consumers are protected and the structure of the redressal machinery.

Concept

Consumers can be protected through self-help, consumer awareness, consumer organisations/NGOs, and the legal redressal machinery.
The Consumer Protection Act sets up a three-tier system of consumer commissions to hear grievances at increasing levels of claim value.

Evaluating each statement

Statement I — TRUE: Consumers uniting into associations to safeguard and promote their interests is a standard means of consumer protection.
Statement II — FALSE: The redressal machinery is three-tier (District, State, National Commission). Calling it 'two-tier' is the error.

Why the other options fail

(A) Both true — wrong, because Statement II mis-states the tiers.
(B) Both false — wrong, because Statement I is correct.
(D) I false, II true — the reverse of the truth.

Exam trap

The number of tiers is a classic trap: it is three (District–State–National), never two.

Common Mistakes

1Marking 'Both true' by overlooking that the machinery is three-tier, not two-tier.
2Believing consumer associations are not a valid means of protection — they are a recognised way consumers can protect themselves.
3Confusing the earlier terms District Forum with the current District Commission under the Consumer Protection Act, 2019.

Interesting Facts

The Consumer Protection Act, 2019 replaced the 1986 Act and set up the Central Consumer Protection Authority (CCPA) to regulate matters relating to consumer rights.

Under the 2019 Act, the redressal bodies were renamed 'Consumer Disputes Redressal Commissions' at the District, State and National levels.

The 2019 Act introduced provisions for e-commerce, product liability and mediation as an alternate dispute resolution mechanism.

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Frequently Asked Questions

How many tiers does the consumer redressal machinery have?

Three tiers — the District Commission, the State Commission and the National Commission. Statement II wrongly calls it two-tier, which is why it is false.

Are consumer associations a genuine means of consumer protection?

Yes. Consumers forming associations and NGOs to protect and promote their interests is a recognised way consumers can safeguard themselves, so Statement I is true.