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A district consumer forum in Delhi imposed a fine of Rs 15 lakh on Emami Ltd for unfair trade practices after a man alleged that the company’s fairness cream advertisement was deceptive and misleading.
The Central Delhi District Consumer Dispute Redressal Commission was hearing a complaint about unfair trade practices against Emami Ltd for its product, Fair and Handsome cream.
The complainant said that he purchased the cream in 2013 for Rs 79, but the product failed to give him the assured result of fair skin.
The forum comprising its President Inder Jeet Singh and member Rashmi Bansal passed the order on December 9.
It noted the complainant’s submissions about “using the product regularly as per instructions given on the packaging and label of the product — apply on face and neck twice daily after cleansing for faster glowing fairness — but he did not gain fairness in his skin or reap other benefits.
It also noted that according to Emami Ltd, the complainant was unable to prove that he used the cream as per the instructions and so the product was not defective.
The forum said there was nothing on record to help it conclude whether the complainant’s skin had become fair after using the product.
It noted the written submissions of the company that to have the desired results from a personal care product, several factors such as proper usage of the product and a proper nutritious diet, exercise, healthy habits and hygienic living conditions were required.
“Such robust conditions are not mentioned in the packaging and labelling of the product. There is another improvement in the final written argument that the product is meant for normal young men (not sick people) between the age of 16–35 years. What does a sick person mean? This additional requirement is also not mentioned on the packaging,” the forum said.
It said Emami Ltd cannot blame the complainant by alleging that instructions were not followed.
Noting the evidence before it, the forum said, “The opposite party or OP (Emami) is offering the product – Fair and Handsome cream with few, negligible and limited instructions on the packaging and labelling that its regular use for three weeks will result in fairness in the skin of man.”
The consumer forum said the company knew that the instructions mentioned were incomplete and, for want of following the other requirements, it will not give the result claimed.
It said that a reasonable or average intelligent customer could also be under a “convincing impression” that following the exclusive instructions mentioned on the cream’s packaging would give the results as claimed.
“This proves a misleading advertisement and unfair trade practice to promote product and sales. This strategy was adopted by the OP,” the forum said.
It said that Emami Ltd had adopted an unfair trade practice by adopting representations – through advertisement and packaging – that were deceptive and misleading.
The forum, however, held that a corrective advertisement in newspapers was not required as the complaint was filed in 2013.
“The complaint is partly allowed while directing OP to discontinue the unfair trade practice in respect of its product, to withdraw those packages, labels, advertisements either of its brand ambassador or otherwise and not to re-exhibit by mode of audio or visual or combination of both forthwith; and to deposit punitive damages of Rs 14.50 lakh.”
The amount had to be deposited in the Delhi State Consumer Welfare Fund, the forum said, adding that the complainant also be paid Rs 50,000 for punitive damages along with Rs 10,000 costs.
The forum explained that punitive damages or exemplary damages were assessed and awarded in order to pinch the respondent (against whom the complaint was made) for outrageous or intolerant behaviour and to refrain or deter the respondent and others from engaging in conduct similar to that which formed the basis of the lawsuit.
“Punitive damages are also imposed to reform defaulting parties as well as to deter others from indulging in such wrongs,” the forum said.
The trial in the case was protracted as in 2015, the district forum ruled in the complaint’s favour, but the Delhi state consumer commission subsequently returned the case to the forum, asking it to commence fresh proceedings via thorough evaluation of evidence.
