Consumer forums were established to address consumer complaints and protect consumer rights through judicial hearings. They consist of district, state, and national consumer forums that handle cases based on the monetary value of goods/services. District forums handle cases up to 20 lakh rupees, state forums up to 1 crore rupees, and national forums over 1 crore rupees. The forums aim to maintain fair business practices and allow consumers to file grievances against businesses within 30 days if unsatisfied with a lower court's ruling.