The Department of Consumer Affairs (DoCA) on Friday said it has amended Consumer Welfare Fund guidelines and now the Consumer Welfare Fund will be used to pay fees of the mediator in consumer complaints.

The Consumer Protection Act consisits of provision of mediation as a speedy, hassle-free and an inexpensive redressal of consumer complaints. Most of the Consumer Commissions have also set up Mediation Cells and have empanelled mediators. “ Currently, there are 247 mediators empanelled in the State Commissions and 1,387 in the District Consumer Commissions all over India,” DoCA noted.

However, it added that it observed that a substantial number of cases are not resolved through mediation. It recently held deliberations on this issues with various stakeholders. “Among the several issues, the main issue resulting in non-satisfactory results in the redressal of cases through mediation is the fee of the mediator. The parties in the disputes are observed to be reluctant in paying the fees of the mediator which results in unsuccessful conduct of the mediation process,” it noted.

“The Consumer Welfare Fund guidelines have been amended and now Section IV Purpose (m) of the updated guidelines includes reimbursement of legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication,”it said in a statement.

The fee of the mediator will be either be set by the President of the Commission, or will be in line with the amended guidelines. It noted that whichever is least, (that prescribed by President or in amended guidelines) shall be paid to the mediator. This will be done from the interest accrued on the Consumer Welfare (Corpus) Fund, established with co-contribution from the State and the Department of Consumer Affairs, it noted.