District Consumer Forum: Charging Cost for carry bags with Company Logo an ‘Unfair Trade Practice’ [Read Order]

State Consumer Dispute Redressal Commission (Pic by Goolge).jpg

The District Consumer Disputes Redressal Commission, Hyderabad in its recent Order stated that the Companies or Stores selling of the plastic bags having their Company Logo due to which Acts of them, they are using the complainants as tool of their Advertisement that leads to adoption of un-fair trade practice.

Factual Background of the Case

The complainant purchased a product from the Super Market at Rs.118/- which includes the prize of the plastic cover which was given to him. The carry bag supplied by the opposite party on collecting Rupees 3/- towards its cost contains the company’s name and Logo for which the opposite party was used the complainant as their advertisement agent at the costs of the complainant.

Using the Consumer as advertisement agent at his cost tantamount to un-fair trade practice Under Section -2 (1) (r) of the Consumer Protection Act, 1986. The complainant approached the Telangana State Information and Alternative Consumer Disputes Centre requesting the Commissioner to take necessary action against the opposite party who committed error.

Opposite Party Submissions

The Supper market in its written submissions stated before the Forum that,

  1. The present complaint is neither maintainable in law nor on facts and is liable to be dismissed in limine against the opposite party and at the outset.
  2. It is well known fact that the purchasing a carry bag having logo printed on it (printing of Registered Trade Mark/Brand name as “More/More Super Market, More Quality 1st ) at the opposite party shop is purely at the choice of the complainant.
  3. The complainant failed to furnish any relevant documents in support of any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance in relation to the service or commodities from the answering the opposite party. The act of answering opposite party to sell plastic carry bags on payment and having printed with the name of the opposite party is in adherence with the Plastic Waste Management Rules, 2016 (as amended in 2018) and does not, therefore fall under the category of Un-fair Trade Practice as defined Under Section 2 (1) (r) of the Consumer Protection Act, 1986.
  4. The decision to charge for the bags was based on the principle known as “Polluters Pay” – an environment practice that is commonly accepted in Europe requiring that responsible for pollution to bear the costs of managing it to prevent damage to human health or the environment.

Issues before the District Consumer Dispute Redressal Forum

  1. Whether any deficiency of service is there or any un-fair trade practice is made out upon the part of the opposite parties?
  2. Whether the complainant is entitled for the relief sought?
  3. To what relief?

Court Findings

The Court in its findings stated that the,

  1. The only dispute under the case in hand is that, the opposite party has been using its esteemed consumers as its Advertisement agents, by selling the carry bags to the customers with their Logo without prominent prior notice and information before the customer makes his choice of patronizing its retail outlets and before the customer makes his selection of goods for purchase and also without disclosing the silent specifications and price of the carry bags.
  2. Disclosing the price of carry bags at the payment counter seems to be undoubtedly an “un-fair trade practice” Under Section – 2 (1) (r) of the Consumer Protection Act, 1986 .
  3. The opposite party is selling the plastic bags having their Company Logo due to which Acts of them, they are using the complainants as tool of their Advertisement that leads to adoption of un-fair trade practice apart from deceptive nature of services and committal of spurious acts that should be highly objectionable.

Directions to Super Market

The Court issued the following directions to the Super Market:-

  1. Provide free carry bags to all customers if in case they printed their Company Logo on the carry bags.
  2. However the opposite party is at liberty to charge for the plain carry bags, with prior intimation and consent of Consumers and by displaying the information at conspicuous places in the Business premises.
  3. Pay back Rs.3/- which was charged to the complainant with interest @ 12% p.a.
  4. Pay Rs.15, 000/- (Rupees Fifteen Thousand only) towards compensation for collecting Rs. 3/- from the complainant for the cost of carry bag having the Company Logo, for which the opposite party utilized the complainant as tool of their Advertisement, which amounts to adoption of un-fair trade practice with deceptive nature apart from spurious Acts.
  5. Pay Rs.1500/- (Rupees Fifteen Hundred only) towards cost of the proceedings.

Read Order @Latestlaws.com

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