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'Unfair Trade Practice': Consumer Forum Directs Handbag Manufacturer To Cough Up ₹38K For Charging ₹20 For Carry Bag With Company Branding

LIVELAW NEWS NETWORK

8 May 2022 10:30 AM GMT

    • Unfair Trade Practice: Consumer Forum Directs Handbag Manufacturer To Cough Up ₹38K For Charging ₹20 For Carry Bag With Company Branding

    A district consumer forum in Bandra directed handbag manufacturer ESBEDA to pay up over Rs. 38,000 for indulging in unfair trade practices after it charged a woman Rs 20 for a carry bag with its advertisement on it. ESBEDA ( Intouch Leather House Pvt Ltd) has been directed to pay Rs 13,000 of the amount to the complainant, Reema Chawla, Rs 20 refund for the carry bag and Rs....

    A district consumer forum in Bandra directed handbag manufacturer ESBEDA to pay up over Rs. 38,000 for indulging in unfair trade practices after it charged a woman Rs 20 for a carry bag with its advertisement on it.

    ESBEDA ( Intouch Leather House Pvt Ltd) has been directed to pay Rs 13,000 of the amount to the complainant, Reema Chawla, Rs 20 refund for the carry bag and Rs. 25,000 towards the consumer welfare fund.

    A panel comprising chairman RG Wankhade and member SV Kalaal decided the matter ex-parte.

    Calling the practice an exploitation of customers the forum said,

    "When the customer comes to the shop to buy the goods, carry bags should be provided free of cost for carrying them. Charging extra for this amounts to unfair trade practice."

    The complainant, Reema Chawla, a Business Process Outsourcing firm trainer had sought a total compensation of Rs 1,50,020 from the company, Intouch Leather House India Pvt Ltd.

    In her complaint filed through advocate Prashant Nayak, Chawla said she purchased the bag for Rs 1,690 on August 4, 2019. "The complainant states that respondent being the seller is duty bound to provide a basic accessory, like a carry bag, to carry their products purchased from their respective store. It is highly unprofessional and deficient towards the consumers to charge for the bags which are branded and used by the respondent for its own branding and advertising purpose," the complaint read.

    Chawla said she had sent the company a legal notice, but later filed a case when she received no compensation.

    Intouch Leather House had refuted allegations of malpractice or unethical business against it in a news report but did not appear before the consumer panel. The company said that there was a separate bill for the purchase of their moisture proof bag, which is chargeable under the Goods and Services Tax.

    In the past, consumer forums in Chandigarh have held companies including Bata and Lifestyle International Private Limited guilty of unfair trade practices for charging for bags with their advertisements printed on it.



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    Consumer ForumAdditional Costs For Carry Bags Having Company LogoUnfair Trade PracticeAdvertisement
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