Stores
Charging for Carry bags are unfair trade practice
This
happens with every one day in and day out that after picking up number of item
for purchase from a store and coming to the counter for payment ,you are
asked-do you want small bag or bigger one . Small bag costs you Rs. 5 and for
bigger one you need to pay seven rupees or so.You are not prepared though you
must have spent more than thousand rupees but this demand you find not
justified and it spoils your good day.
Now
store manager has many reasons to convince you –Government has banned plastic
bags and we cannot afford to provide paper bags or other costly bags made of
other material free to the customers. In Feb , 2019 the district forum
Chandigarh had ordered Lifestyle, a retail
store at Elante Mall to provide free carry
bags to
customers forthwith who purchase articles from the shop.Lifestyle had filed an
appeal challenging the order passed and requested to stay the order referring
to notification called the “Plastic Waste (Management And Handling) Rules, 2011
and cited Rule 10 regarding “Explicit pricing of carry bags” he said rules read
that
Advocate for complainant argued that the said notification was not relevant.
Even otherwise, the said notification has been repealed long back and is no
longer valid. State Commission had
refused to stay the order of District forum. This was meant to induce retailers
to shift to the new standards for plastic, discourage consumers from using
plastic bags, and encourage them to bring their own bags
Advocate for complainant argued that the said notification was not relevant.
Even otherwise, the said notification has been repealed long back and is no
longer valid. State Commission had
refused to stay the order of District forum. This was meant to induce retailers
to shift to the new standards for plastic, discourage consumers from using
plastic bags, and encourage them to bring their own bags
It was a natural outcome that cases started
pouring before the consumer commissions in protest. National Commission had 14 revision petitions in hand for disposal
coming from various state commissions of the country on this issue. Leading
case
Big Bazar, Future Retail Ltd, Vs. Ashok Kumar, RP No 975 of 2020, decided on December 22, 2020
is the landmark decision by the apex commission which travelled from the
District Consumer Disputes Redressal Forum II, UT, Chandigarh who had directed
Big Bazar to return to the consumer, the cost of the carry bag Rs. 18 per bag,
pay Rs100 as compensation, Rs1, 100 as litigation costs and also deposit as
punitive damages, Rs. 5,000 in the Legal Aid Account of the Forum. This order
was further confirmed by the State Consumer Disputes Redressal Commission, UT, and
Chandigarh. The apex consumer Commission also said the award was justified.
1.
Consumer is imposed additional cost of carry
bags at the time he comes for making payment, without prior notice and
information. Consumer has no choice of patronizing its retail outlets for
purchasing goods at this stage
“Such notice or information at the time
of making payment not only causes embarrassment and harassment to the consumer
and burdens him with additional cost but also affects his unfettered right to
make an informed choice of patronizing or not patronizing a particular outlet
at the initial stage itself and before making his selection of goods for
purchase."
3. It
is often not disclosed the specifications and price of the carry bags”
Apex
commission directed the Chief Executive of the retail chain to immediately
issue appropriate instructions to all its outlets accordingly. It is further pointed out
In the era of online shops this practice of
charging for carry bags is going to fall heavy on such stores &shops and
not only big bazar but other stores also need to understand the order of
National commission.
Interestingly in October 2020,Shri Mumbai
Mishtanna Vayasai, an association of 250 sweet sellers and shop owners had
filed PIL before the High Court of Mumbai challenging two orders passed by the
Food Safety and Standards Authority of India (FSSAI).
The first order of FSSAI dated February 24
made it mandatory for sweet outlets to display from October 1 the date of
manufacturing and best before date of non-packaged/loose sweets on sale and the
container/tray holding them.
The FSSAI Further ordered for sweet shops to
mentioned instances of stale/expired sweets being sold to customers.
The Bombay High Court on Tuesday imposed a
fine of ₹1 lakh on an association of sweet shop owners for challenging the
above orders
There are many instances of this kind all
over the country where consumers have come ahead to register their resentment aginst
charging for carry bags by the stores
In Guahati, it was made illegal for
shopkeepers or shopping malls to charge extra money from consumers for plastic
bags or paper bags or any kind of bags since March 2018.
Other incidents and action by consumer welfare
authorities
The District Consumer Disputes Redressal
Forum in Chandigarh imposed penalty of Rs. 13,000 on a leading retail store
Lifestyle for charging Rs. 5 from a consumer for paper carry bag and held it
deficiency in service and indulgence in unfair trade practices in January 2019.
The consumer welfare associations remarked
that the Chandigarh consumer commission’s order applies across the nation.
Madurai District Consumer Forum passed a
similar order. Secretary, Consumer Protection Council, Tamil Nadu, said. “Spirit
of such orders can be taken as a precedent," The consumer protection
council of the state also invited consumers to contact over phone at
93451-01216 if any consumer needs support to approach consumer court.
The Labour Department maintained that the
practice followed by retail outlets is out of its purview. But the official
also expressed their hands are tied for taking any action -
“We can act only if the outlet makes it mandatory
to purchase the carry bag. Since it is optional, we cannot do much with the
existing laws."
Though public keeps crying foul over shops
charging for carry bags but retail stores in cities like Mumbai, Bengaluru,
Kolkata etc, continue to charge for carry bags from customers. Shopping malls
in every city have failed to learn a lesson from orders of consumer courts
shopping malls charges extra for plastic bags, paper bags or any kind of bags.
The prices starting from Rs. 5 to Rs. 20 for each bag.
There was yet a peculiar case decided on
February 21, 2021 from Hyderabad
A Consumer Disputes Redressal Commission
directed a hypermarket to give carry bags printed with company logo free of
charge to customers, refund ₹ 3 which the company had charged for a carry bag
printed with its logo, and pay ₹ 15,000 as compensation.
The District Consumer Disputes Redressal
Commission – II at Hyderabad bench headed by president Vakkanti Narasimha Rao,
was dealing with a complaint filed by Baglekar Akash Kumar (21), a student,
against More Megastore Retail Limited in Errumanzil.
The complainant had bought a product on June
1, 2019, and paid ₹118 which included the price of a plastic carry bag with its
logo printed on it. He alleges that by
charging ₹3 for the carry bag, the company had used the customer as an
‘advertising agent’, which is an unfair trade practice. He cited a Chandigarh
Consumer Disputes Redressal Commission order.
The opposite party contended that it did not
force the complainant to buy the carry bag and that no regulation mandates
supplying free carry bags to customers. The complainant is free to bring his
own carry bag.
It also contended that by providing plastic
carry bags of 50 microns thickness, as mandated by Plastic Waste Management
Rules, it is neither advertising itself, nor using the consumer as an
advertising agent. It further explained that signboards are prominently placed
at their stores which encourage customers to bring their own carry bags,
purchasing bag is an optional.
Taking all evidence and arguments placed on
record, the bench noted that the issue, which is disputed is whether the
opposite parties have their customers as advertising agents by selling them
carry bags with the company’s logo printed on them without prior notice.Commission
noted -
“Disclosing the price of carry bags at the
payment counter seems to be undoubtedly an “unfair trade practice” Under
Consumer Protection Act The consumer has a right to know that he or she would
be charged extra for carry bags, and also the specification and price for
them.”
Another three cases from Mohali also attract
the attention of stakeholders
The Big Bazaar authorities filed a
written reply stating there was nothing wrong in charging the amount as the
same was displayed in the store. The complainant had given their consent to
give the carry bag for additional charge.
It has further been pleaded that
through advertisement /posters/notices clearly displayed at prominent locations
of the store stating that as a part of its responsible & environmentally
conscious business policy, consumer are requested to carry their own bags &
that a separate charge was to be charged in case the consumer wished to obtain
a new carry bag,” the Big Bazaar said.
The forum, however, said, “We aren't
impressed with this argument because big stores don't allow customers to carry
bags in their hands within their premises, knowing very well that if they are
allowed, then customers will not easily give their consent for the purchase of
carry bags. The store is, therefore, taking advantage of its dominating
position.”
The forum further said the store has
miserably failed to produce on record any cogent, convincing & reliable
piece of evidence in the shape of any rules/ instructions authorizing it to
levy charge additionally for the carry bag from the consumers.
“In this backdrop, charges of such
things (carry bags) cann't be separately foisted upon the consumers & the
same would amount to unfair trade practice on their part,” the forum observed.
“Besides, if the store claims itself
to be responsible & environmentally conscious, it should have given the
carry bags to the customers free of cost because in our considered view, the
price of the carry bag has generally been included by them in the profit
margins of the product(s).” They were then directed to pay up.
The consumer forum has ordered a store
in Elante Mall, Industrial Area, Phase I, to pay Rs 18,600 for charging
money for carry bags from three different customers.
In each complaint, Big Bazaar has been
directed to deposit Rs 5,000 as penalty to the forum for each case & Rs
1,200 as compensation to each complainant
In nut shell situation is that stores
are still continuing with the practice of charging for carry bags ignoring the
apex commission orders. Its high time that CCPA to take suo moto action on this
issue under the new consumer protection act 2019 in order to set the
controversy at rest
Dr Prem Lata
Consultant (Legal) CCS IIPA
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