Parliament Question: AI based Consumer Complaints Redressal Mechanism

ORIGINAL IN HINDI Government of India Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs LOK SABHA UNSTARRED QUESTION NO.1827 TO BE ANSWERED ON 30.07.2025 AI BASED CONSUMER COMPLAINTS REDRESSAL MECHANISM 1827. SHRI HARISH CHANDRA MEENA: (OIH) Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state: (a) whether 54893 digital consumer complaints registered in Financial Year 2023-24 increased to 68831 in Financial Year 2024-25 despite the implementation of Artificial Intelligence (AI) based redressal mechanism in Rajasthan and the country; (b) whether the Government is aware of this increase in number thereof after the introduction of AI based redressal mechanism and if so, the reasons therefor; and (c) whether the Government proposes to take any steps to reduce the volume of this increasing number of complaints and if so, the details thereof? ANSWER THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI B.L. VERMA) (a) to (c) : The Department has revamped the National Consumer Helpline (NCH), which has emerged as a single point of access for consumers across the country for grievance redressal at the pre-litigation stage, thereby enhancing the accessibility and effectiveness of the consumer grievance registration and redressal system. The helpline operates in a dedicated manner from 8 AM to 8 PM on all seven days of the week, except on national holidays. To enhance accessibility further, a call-back facility is available. An exclusive call center has been established to ensure prompt service. NCH proactively partners with companies who want to join the programme on a voluntary basis to offer efficient consumer complaint resolution. This initiative gives the company an opportunity for better corporate governance and social responsibilityby redressing consumer disputes at pre-litigation stage. The number of convergence partners has steadily increased from 263 companies in 2017 to 1,110 companies till now spanning across the sectors such as E-commerce, Banking, General Insurance, Life Insurance, NBFCs, Travel & Tourism, Food, Consumer Durables, Electronics Products, Broadband & Internet, Direct Selling, Retail Outlets, Digital Payment Modes, Agency Services and Others.The technological transformation of the NCH has significantly boosted its call-handling capacity. The number of calls received by NCH has grown more than tenfold, from 12,553 in December 2015 to 1,55,138 in December 2024. This exponential growth reflects the rising confidence of consumers in the helpline. Similarly, the average number of complaints registered per month has surged from 37,062 in 2017 to 1,11,951 in 2024. Additionally, grievance registration via WhatsApp has gained momentum, with the percentage of complaints filed through the platform increasing from 3% in March 2023 to 20% in March 2025, demonstrating a growing preference for digital communication channels. In a significant move to further enhance grievance redressal, NCH has introduced AI-based Speech Recognition, a Translation System, and an AI enabled Chatbot as part of the NCH 2.0 initiative. These technological advancements aim to make the grievance filing process more seamless, efficient, and inclusive. The AI-powered Speech Recognition and Translation System enables consumers to file complaints through voice input, reducing manual intervention. The AI enabled Chatbot provides real-time assistance, streamlining complaint-handling processes, and improving the overall user experience. These upgrades ensure that consumers from diverse linguistic backgrounds have equal access to the grievance redressal system. The website of the National Consumer Helpline (NCH) has also been upgraded to serve as the central point of access for consumers across India seeking grievance redressal at the pre-litigation stage. This website includes enhanced functionality, modern features, and improved navigation with a user-centric design. It incorporates advanced features, offering faster grievance resolution and a more efficient user experience. This increase in the number of consumer grievances registered digitally is primarily due to enhanced consumer awareness about their rights, the improved outreach and accessibility of the National Consumer Helpline (NCH), and the availability of multiple grievance registration modes through the Integrated Grievance Redressal Mechanism (INGRAM), such as toll-free number 1915, WhatsApp, SMS, NCH app, email, UMANG app, and the web portal. The facility is also available in 17 Indian languages, enabling consumers from diverse linguistic backgrounds to access the helpline conveniently and ensuring wider regional access across the country. The Department of Consumer Affairs has been implementing a scheme titled “Consumer Awareness”. Under the Scheme, the Department of Consumer Affairs has been conducting countrywide multimedia awareness campaigns titled “Jago Grahak Jago”. Consumers are made aware of unfair trade practices, grievance redressal mechanisms, Hallmarking, ISI products, and various other consumer related issues through various media like TV, radio, cinema theatres, IVRS, fairs & festivals as well as digital media like Youtube etc. Under the scheme, Grant-in-Aid are also provided to States / UTs for carrying out activities on consumer awareness with local content in regional level. The Department has been actively using social media with various creatives, infographics and videos for consumer awareness. *****