Consumer Welfare Fund to now pay fee of the mediator in a consumer dispute

In a big relief to consumers, the Centre on Friday updated the Consumer Welfare Fund Guidelines to include reimbursement of legal expenses incurred by a complainant or a set of complainants in a dispute towards a mediator. As per the details put out by the Department of Consumer Affairs, the Consumer Welfare Fund will now pay fee of the mediator in consumer complaints.

"The amount of dispute, or the fee of the mediator as set by the President of the Commission, or the fees prescribed in the following table, whichever is least, shall be paid to the mediator, from the interest accrued on the Consumer Welfare (Corpus) Fund, established with co-contribution from the State and the Department of Consumer Affairs," the press release said.

The Department of Consumer Affairs said the main issue in the complaint resolution is non-satisfactory results in the redressal of cases through mediation and the fee of the mediator. The parties in the disputes are observed to be reluctant in paying the fees of the mediator.

"To resolve this issue, department furnishes suggestions and comments from all the State Consumer Commissions. On the basis of the deliberations held, and suggestions and comments furnished, (the department) has decided to pay the fees of the empanelled mediator from the corps of the Consumer Welfare Fund," it added.

The Consumer Protection Act, 2019 is already in place for the speedy and, inexpensive redressal of consumer complaints. Consumers have been provided the provision of settlement of disputes through Mediation under Chapter V.