Consumer Protection 2016 FA

CONSU

CONSUMER IS

MER IS KING !!

KING !!

•

• The Corruption isThe Corruption is becoming so becoming so

rampant, widespread rampant, widespread

and deep that the and deep that the society, instead of society, instead of bothering, bothering, complaining and complaining and  fighting, is ac

 fighting, is acceptingcepting it as a way of life !!  it as a way of life !! 

•

• Right to be protected Right to be protected  •

• Right to be informed Right to be informed  •

• Right to be assured Right to be assured  •

• Right to be heard Right to be heard  •

• Right to seek redressal Right to seek redressal  •

• Right to consumerRight to consumer

education education

Redress through

courts-Time consuming, costly affair

Who is a

"consumer" means any person who:

i) buys any goods for a consideration which has been  paid or promised or partly paid and partly promised,

or under any system of deferred payment and includes any user of such goods other than the person who

buys such goods for consideration paid or promised or  partly paid or partly promised, or under any system of

deferred payment when such use is made with the

approval of such person, but does not include a person who obtains such goods for resale or for any

ii) [hires or avails of] any services for a consideration which has been paid or promised or partly paid and  partly promised, or under any system of deferred

 payment and includes any beneficiary of such services other than the person who [hires or avails of] the

services for consideration paid or promised, or partly  paid and partly promised, or under any system of

deferred payments, when such services are availed of with the approval of the first-mentioned person but does not include a person who avails of such services  for any commercial purpose,

Position after the 1993 Amendment 

2[Explanation : For the purposes of sub-clause (i), "commercial purpose" does not include use by a

consumer of goods bought and used by him

exclusively for the purpose of earning his livelihood, by means of self-employment;] 

1)Abhijeet bought a Television set

 from an electronics shop for using it

at home. TV was defective. Is he a

consumer ? 

2)Sumit on a holiday with his family

hired a taxi. Taxi was in a poor

condition and broke down several

times. Is sumit a consumer ? 

3) Baman bought a pressure cooker for

use by his family. In the first use itself

while his wife Simi was using it, it busted

and hurt Simi. Is she consumer ? 

4) Anand runs a laundry shop. He brought

a washing machine from an electronics

shop for using at his shop. The machine

was defective from time it was delivered.

5)Balu is a distributor of computer 

accessories. He bought 100 pen

drives

from

manufacturer

for  

selling to other computer vendors.

 Abhijeet bought a TV for using it at

home. He paid 30% of the amount.

The remaining 70% to be paid a week

later. Is he a consumer ? 

What if, whole amount is to be paid

after one month ? 

What if, amount is to be paid in six

equal monthly installments ? 

 At a conference, free pens are

being distributed by Vijay. The

 pens are defective and start

leaking. It spoilt clothes of several

 persons. Do they have right of

•

Western India State Motors v.

•

•   The NCDRC had no hesitation in ruling that  The NCDRC had no hesitation in ruling that

the buying of a car for the purpose of running the buying of a car for the purpose of running it as a taxi was a commercial purpose and it as a taxi was a commercial purpose and tthhuus s ccoouuld ld nnoot t bbe e bbrroouugghht t tto o a a ccononssuummeerr court..

court..

•

•  ‘Livelihood contention’ ‘Livelihood contention’ ?? ??

•

• Consumer: QuickConsumer: Quicker and Ineer and Inexpensive rxpensive relief elief  •

Synco Textiles Pvt Ltd v. Greaves

Synco Textiles Pvt Ltd v. Greaves

Cotton (1991)

Cotton (1991)

•

•  Synco Textiles Pvt Ltd purchased 3 generating Synco Textiles Pvt Ltd purchased 3 generating

sets at a

sets at a total cost of Rs total cost of Rs 553000 from Greaves553000 from Greaves Cotton & Co. Ltd for use it its factory. The Cotton & Co. Ltd for use it its factory. The generating sets turned out to be defective generating sets turned out to be defective leading to loss of business. Synco Textiles was leading to loss of business. Synco Textiles was claiming before the State Commission. The claiming before the State Commission. The St

Staatte e CoCommmmisissision on didismsmisissesed d tthe he ccasase e as as itit was for commercial purpose

• The NC resorted to the dictionary meaning as

‘commercial purpose’ had not ben defined by the act. It seems to us clear that the intention of Parliament, is to deny the benefits to persons purchasing goods either for the purpose of resale, of for being used in profit making activity on a large scale…

Laxmi Engineering Works versus

P.S.G. Industrial Institute

• A large number of self-employed people

benefit from this ruling. The court has clearly held here that a person who buys goods and uses them himself, exclusively to earn his livelihood, by means of self-employment, is within the definition of the expression 'consumer as defined in CPA.

•  M/s Laxmi Engineering Works filed a case in

the Maharashtra State Commission (MSC) at Mumbai. The MSC awarded it Rs 2.48 lakh holding that it was a 'consumer of the machinery bought from M/s P.S.G. Industrial Institute. The matter went to the National Commission (NC) in appeal.

•   A key contention raised by PSG was that

Laxmi Engineering Works was not a Consumer within the provisions of Consumer Protection Act.

• The NC set aside the MSCs order saying the

claimant company should move a civil suit for relief and held it was not entitled to invoke the CPA as it was in the business of  manufacturing machine parts on a large scale for the purpose of 'earning profit and the value of a single piece of machinery used by this firm was Rs 21 lakh.

• Laxmi Engineering filed an appeal in the

Supreme Court which upheld the NCs view. But the apex court, also held that a self-employed person who buys and uses commercial goods to earn a livelihood is a consumer under the CPA.

Judgment

• It was held by the Supreme Court that whether the  purpose for which a person has brought goods is a

“commercial purpose”  within the meaning of the definition of the expression  “consumer”  in Section 2(d) of the Act is always a question of fact to be decided in the facts and circumstances of each case therefore having regard to the nature and character  of the machine and the material on record Supreme Court held that said machine was not the goods which the appellant Laxmi Eng. Works purchased   for use by himself exclusively for the purpose of 

earning his livelihood by means of self employment. The appeal was accordingly dismissed.

•   It further said that if a person earned his

livelihood by working on a typewriter or plying a taxi or driving a truck, then he could benefit from the provisions of CPA. The Supreme Court thus held that it was not the value of the goods that mattered but the purpose to which the goods bought were put to.

•  The several words..

•   ‘Uses them by himself’,

•   ‘Exclusively   for the purpose of earning his

livelihood’, and

• ‘By means of self  employment’ ..

•  A reading of the definition of consumer 

makes it clear the Parliament wanted to exclude from the scope of the definition the  persons who obtain goods for resale and also those who purchase goods with a view to using such goods for carrying on any activity   for earning. The immediate purpose as

distinct from the ultimate purpose of    purchase, sale in the same form or after 

conversion and a direct nexus with profit or  loss would be the determinants of the character of a transaction-whether it is of a "commercial purpose" or not.

• In Laxmi Engineering Works V. PSG Industries,

AIR 1995 SC 1428 the Supreme Court laid down the test as close and direct nexus with the commercial activity. It is not the value of  goods but the   purpose for which it was purchased that matters…

• In Bhuperndra Guna Vs Regional Manager 

and others (II 1995 CPJ 139), the National Commission held that a tractor purchased primarily to till the land of the purchaser and let or on hire during the idle time to till the lands of others, would not amount to commercial use.

• Super Engineering Corporation Vs Sanjay

Vinayak Pant Kores (India) Ltd Vs Samir Purkayastha (1996) National Commission In a given case a farmer had purchased seeds from a party. The seeds did not germinate. The other party took the plea that I was not a consumer. Whether purchase of seeds for the purpose of agriculture is purchase for commercial purpose? Purchase made for agriculture is not for commercial purpose.

• In a case, the appellant had purchased EPBAX

system for his hotel with warranty and annual maintenance contract. There was deficiency of service during warranty period and AMC period. The National Commission held that case falls under Section 2(1)(d) and appellant entitled to compensation.

•  Petitioner filed complaint, inter alia, alleging

that he along with his wife has been running a maternity home at 10/60, Katar Madari Khan, Agra. Petitioner placed an order on 22.2.1994 for supply of Ultrasound Scanner Model 212 on the respondent opposite party. Respondent supplied the machine on 31.3.1994. Warranty was of one year. It was alleged that after installation, the machine went out of order..

• Engineer deputed by the respondent on

checking found that the machine needed to be replaced, it being defective. Respondent had not replaced/repaired the machine despite repeated requests including service of legal notice. Purchase of Ultrasound Scanner model 212 by the petitioner was not denied. However, it was pleaded that petitioner is not a consumer as defined in Consumer Protection Act, 1986

• In yet another recent case the complainant a company had

purchased computer system along with related accessories from the opposite party. The intellifax machine, which was supplied with the computer, was not giving performance up

to the mark and the same was defective. When the dispute

went to the reddressal forum under the opposite party contended that the complainant was not a consumer as the computer and the machine were purchased by the company for business purpose i.e. for commercial purpose. However the defect in the machine was intimated to the opposite party within the warranty period. The National Commission held that the purchaser of the machinery would certainly be a consumer in respect of defect in machine during period of 

• Vimal Mehra Vs Bhasin Infortech & Others

Privity of Contract

• Preist & Wife v Last (1903)

 -•  P asked L for a hot water bottle. Having being

shown one by L he asked L if it would stand boiling water. L replied no, but it would stand hot water. P then bought for his wife. Fifth night of use bottle bursts & injures Mrs. P turned out that the bottle burst because pure rubber formed a very small proportion of the material.

•  P claims price & damages for  wife’s pain &

suffering from L.

•   Issues –

• (a) Privity of contract: Mrs. P has no right?

• (b) Rights of a buyer who relies on the skill &

 judgment of the seller (as discussed in the Sale of Goods Act)

CONSUMER PROTECTION RESDESSAL AGENCIES

• Consumer Disputes Redressal

Forum-DISTRICT FORUM

• Consumer Disputes Redressal

Commission-STATE COMMISSION

• National Consumer Disputes Redressal

Pecuniary Jurisdiction

• Above Rs20 Lakh and below Rs 1 crore

Jurisdiction of District Forum

Pecuniary Jurisdiction 11(1)

To entertain complaints where value of goods or services and the compensation, if any, claimed, does not exceed Rs 20 Lakhs.

Territorial Jurisdiction 11 (2)

The opposite party or each of the opposite parties, where there are more than one, at the time of  institution of complaint, actually and voluntarily resides or carries on business, or has branch office, or personally works for gain or the cause of action, wholly or in part, arises.

Jurisdiction of State Commission

Pecuniary Jurisdiction 11(1)

1) To entertain complaints where value of goods or services and the compensation, if any, claimed, exceed Rs 20 Lakhs but not Rs 1 crore.

2) entertain appeals against the orders of any District Forum within the State,

3) To call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within state when it appears to state commission that District forum has exercised jurisdiction not vested, or has failed to exercise jurisdiction so vested, or has acted in exercise illegally or with material irregularity.

Jurisdiction of National Commission sec 21

Pecuniary Jurisdiction 11(1)

1) To entertain complaints where value of goods or services and the compensation, if any, claimed, exceeds Rs 1 crore.

2) entertain appeals against the orders of any State Commission,

3) To call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission when it appears to National commission that state commission has exercised jurisdiction not vested, or has failed to exercise jurisdiction so vested, or has acted in exercise illegally or with material irregularity.

Findings of the District Forum Sec 14

A. To remove defect pointed by appropriate laboratory from goods in question,

B. Replace goods with new goods of similar description which shall be free from defect, C. Return to complainant price, or charges paid

by complainant,

D. Pay such amount as may be awarded by it as compensation for any loss or injury suffered due to negligence of opposite party.

Appeals from District Forum to State Commission Sec 15

Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State commission within a period of 30 days from the date of order, in such form as may be prescribed.

The State commission may entertain an appeal after the expiry of the said period if it is satisfied that there was sufficient cause for not filing it within that period.

Appeals from State Commission to National Commission Sec 19

Any person aggrieved by an order made by the state commission may prefer an appeal against such order to the National commission within a period of 30 days from the date of order, in such form as may be prescribed.

The National commission may entertain an appeal after the expiry of the said period if it is satisfied that there was sufficient cause for not filing it within that period.

Appeals from National Commission to Supreme Court Sec 23

Any person aggrieved by an order made by the National commission may prefer an appeal against such order to Supreme Court within a period of 30 days from the date of order, in such form as may be prescribed.

Supreme Court may entertain an appeal after the expiry of the said period if it is satisfied that there was sufficient cause for not filing it within that period.

24A. LIMITATION PERIOD for filing a complaint

•   (1) The District Forum, the State Commission or the

National Commission shall not admit a complaint unless it is filed within two  years from the date on which the cause of action has arisen.

• (2) Notwithstanding anything contained in

sub-section (1), a complaint may be entertained after the period specified in sub-section (1), if the complainant satisfies the District Forum, the State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint

within such period:

Provided that no such complaint shall be entertained unless the National Commission, the State Commission or the District Forum, as the case may be, records its reasons for condoning such delay.

SERVICE

• "service" means service of any description which is made available to potential (users and includes the  provision of facilities in connection with banking,  financing insurance, transport, processing, supply of 

electrical or other energy, board or lodging or both, 2[housing construction] entertainment, amusement or  the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service;

• Patient going to a government hospital and

had not been charged for the service.

• Consumer groups very much aggrieved with

• Indian Medical Association Vs. V P Shantha

• Tax as consideration !! 

• It is people who pay taxes, which run

•  Government hospitals/health

center's/dispensaries render free of charge

services to all patients…..

•  Essential Characteristics of Tax:

• A) Compulsory payment without consent, • B) for public purpose,

• C) common burden, quantum depends on

• SC noted that there are 3 kinds of hospitals.. • 1) Services rendered free of charge to all 

• 2) charges are required to be paid by all 

• 3) charges are required to be paid by persons

availing services but certain categories of   persons who cannot afford to pay are

• The expenses incurred for providing free

service are met out of the income from the service rendered to the paying patients…

• To hold otherwise would mean that the

 protection would be available to only those who can afford to pay and such protection would be denied to those who cannot so afford, though they are the people who need  it more !! 

•  Another consequence would be that the

standard and quality of service rendered at  an establishment would cease to be uniform. It would be of a higher and of better quality  to those who can afford to pay it and inferior  to others….

• The services rendered by doctors and  

hospitals irrespective of the fact that part of  the service is rendered free of charge, would  nevertheless fall within the ambit of  ‘Service’ 

under the act.. Also persons who are rendered free service are the beneficiaries and as such come within the definition of   Consumer under the act..

INSURANCE

• Life Insurance and Personal Accident Policy •  Medical Insurance

•  Motor Vehicle Insurance • Property Insurance, etc.

Pre Existing Diseases..

• Praveen Damani V Oriental Insurance Co Ltd 

• Praveen Damani took a medical claim

insurance policy cover of Rs 350000 for   himself for an annual premium of Rs 5174. Before issuing policy, the   company’s doctor  had subjected him to a complete medical   check up. After some time , he developed   chest pain and approached Manipal Heart  Foundation where an angiography was carried out.

•  After two years he underwent a bypass

surgery. The insurance company rejected the  first claim on the ground of pre existing disease. Also they rejected the second claim on the ground of deliberate suppression of  information.

• He complained to District forum which

dismissed his complaint and State

Commission too did the same. The National  commission noted that he had no symptoms of heart disease till he suffered chest pain.

• Had he known the condition, he would have

rushed to get the necessary treatment   immediately and would not have waited for  two years to undergo a bypass surgery by    putting his life at risk.

• Exclusion Clause:

• It is not relevant whether the insured person

had knowledge of the existence of disease or  not. If symptoms of the disease existed   before the effective date of insurance and  even if the insured was not aware of these symptoms, the insurance company is not   liable to pay any claims…?? 

Mrs. Ramanathan V National Insurance

Company

• Padma Ramanathan filed this complaint for 

deficiency in service against the National  Insurance Company repudiating valid claim arising out of the accidental death of her   husband, Ramanathan. He was a partner of a  firm of Chartered Accountants. The firm has obtained personal accident policy of Rs 25 lakh.

• Ramanathan, his wife and children went for 

swimming at the Madras Gymkhana Club at  6.15pm. At about 7.25pm, he asked his wife to take the children out from the pool. When she returned in 5-7 minutes, she found   someone at the bottom of the pool. The body  was taken out by couple of co-swimmers and  only then she realized the drowned person was her husband.

• He was declared dead at 2.15am by Apollo

Hospital. The insurance company repudiated  the claim stating:

• “We wish to inform you that it has not been

established that the death of Mr  

Ramanathan is caused due to bodily injury  solely and directly caused by external, violent  and visible means, and therefore the claim does not comes within the purview of policy, hence No Liability” 

• It was actually argued by the insurance

company that death was cardio-respiratory   failure, and not drowning.

•   “Prolonged  swimming causes exhaustion,

exhaustion causes Anoxia, Anoxia leads to Myocardinal Anoxia, leads to acute cardiac   failure resulting in silent  drowning” 

LIC V Smt. Tejalben Patel

•  At the time of taking policy, the insured did 

not mention in the Proposal Form the fact   that he was hospitalized for fever and pain in throat which he suffered for 8 months. However, he was never hospitalized for heart 

 problem nor he was undergoing any 

treatment. He dies of a massive heart attack  while driving. The Commission rejected LIC,s  petition that there was suppression of 

Lost Policy….

• Bahadur Singh died on 30.8.2002, and was

insured for Rs 500000/- His son Satvinder   Singh was his legal nominee. He was not   aware of the existence of the policy. Three years after the death of his father, he found  the insurance policy while looking for some old articles !! 

Timely Payment of premium..

• LIC Vs Jaya Chandel 

• Karan Singh Chandel had taken a LIC policy 

 for a sum of 150000/- on 28.3.1994. The annual premium which was to be paid on or  before 28.3.1995 was not paid. As per the terms of the policy, it became inoperative after a month. The insured died on 1.7.1995.  A cheque for the premium amount was

BANKING…..

Serving you round the clock

Where every individual is committed Service with traditional personal touch Hum Hain na…

• Hefty Simple and compound interest…

•  Exorbitant Penal Interest

• Mighty bankers with huge resource..

• Litigations are costly and troublesome for

•   A woman bought a washing machine using

credit card for Rs. 18000/- in November, 2014. Rs 1400/- was to be paid every month. The outstanding balance later was Rs 48000/-The total amount payable for washing machine came to Rs. 86,740 !!

• A person has been paying off Rs 50000/- debt

for 3 years. The principal, is till Rs 25000/-What she did not realize was that bank was charging a monthly interest working out a huge 24 % a year. The latest is that banks are offering an EMI on credit card payment. Spend Rs 50000 in a month and you can pay off in 3 EMI, interest just 5%. This 5 % is actually a whopping 60% a year !!

• Recovering loan from defaulting clients…

• CLN   Murthy’s   case, a scientist with IICT,

Hyderabad was tortured by recovery agents of ICICI bank for default of his loan.. The recovery agents sometimes earn almost 30% of loan amount for recovery as fees..

• Mr A S Arunachalam V Chief Manager, SBI

•  He hired a safe deposit locker no E-31 at SBI

in 1996 and was paying rent regularly. He went to bank for operation of locker on 6.6.2001, made an entry in locker access register, and along with bank official went towards the locker, where there was a sticker pasted..

Uma Shankar Bhatt V

Punjab & Sind Bank

•   Bhatt was a 71 year old senior citizen and

suffering from various ailments. His   life’s

savings were deposited with the bank which was unauthorized transferred from his current account to one strange M/S. Bajrang General Traders, whom he did not had any relationship with. When he went to withdraw, he found that Rs 1500000 deposited by him were transferred from his account.. Suffered heart attack, was

Anand Raj. V M/S. Metro Shoes Ltd.

•  Anand Raj had purchased a pair of shoes

 from M/S. Metro Shoes Ltd for Rs 2190. After  one day’s use he was shocked to find that the shoes were defective as one of them was longer than the other. He rushed to the shop  for the exchange. That was denied to him, but they offered to rectify the same, but he  found it uncomfortable even after repairs.

•   “Exchange within 15 days for unused pair  

MISLEADING ADVERTISEMENTS

•   Advertisements and consumer culture have

become a part and parcel of our lives today. In the present globalised era, advertising plays an important role in developing a strong brand name of the corporation or products. In general, advertising is used to inform, persuade, and remind consumers about the products or services. Advertising is believed to enhance   buyers’   responses to products or services offered by a firm, thus

• The influence of advertisements on

consumer choice is undeniable. And it’s this fact that makes it imperative that advertisements be fair and truthful. Misleading and false advertisements are not  just unethical; they distort competition and of course, consumer choice. False and misleading advertisements in fact violate several basic rights of consumers: the right to information, the right to choice, the right to be protected against unsafe goods and services as well as unfair trade practices.

When an ad becomes misleading ?

•  When an edible oil advertisement gives you

the impression that you are free of heart problems so long as you are using that particular oil, then it is misrepresenting facts.

•   When an advertisement of a water purifier

that filters only bacteria (and not viruses) claims that it gives 100 percent safe water, then it is a false statement.

• When a cell phone service provider promises

STD calls for 40 paise per minute, but omits to say that this rate is applicable only when calls are made to numbers serviced by the

same provider, then it constitutes

• When a manufacturer claims that the

refrigerator marketed by him is the best or that it keeps the food inside germ-free, that claim should be backed by adequate data to substantiate the claim. Or else, it becomes a false statement.

•

•  When an advertisement for a detergent says When an advertisement for a detergent says that it can remove grease in just one wash- it

that it can remove grease in just one wash- it

s

shhoouulld d bbe e aabblle e tto o ddo o jjuusst t tthhaat t aannd d tthhee

manufac

manufacturer should be able turer should be able to prove this. Orto prove this. Or

else, it is an incorrect statement or a false

else, it is an incorrect statement or a false

advertisement.

•

• When an advertisemWhen an advertisement proment promises to give yises to give youou a

a   “  “ffrreee e ggiifft”t”   e  evveerry y ttiimme e yyoou u bbuuy y tthhee

advertised product, the free gift should really

advertised product, the free gift should really

b

be e ssoo. . IIf f tthhe e mmaannuuffaaccttuurreer r iis s rreeccoovveerriinngg

either fully or even partly, the cost of the

either fully or even partly, the cost of the

so-c

caalllleed d ffrreee e ggiifftt, , tthheen n tthhe e aaddvveerrttiisseemmeenntt

becomes false and misleading.

•

• If a retIf a retailer claims that he is offailer claims that he is offering a specialering a special discount on his goods as part of a festival

discount on his goods as part of a festival

ce

celelebrbraattioionn, , wwhihile le hhe e is is acacttuualally ly ususining g ththee

festival as an excuse to get rid of old and

festival as an excuse to get rid of old and

o

ouuttddaatteed d ggooooddss, , tthheen n hhe e iis s ddeecceeiivviinngg

consumers.

•  When a toothpaste advertisement says that

it prevents cavities, one expects the manufacturer to have the data to prove this. If he fails to do that, then he is making an unsubstantiated claim or a false statement.

•  If an advertisement for a face cream claims

that it removes dark spots on the face and even prevents them from coming back, the

• manufacturer should be able to prove this. Or

•   Even reducing crucial information about the

product to minute letters at the bottom of  the advertisement could be termed as an unfair trade practice, particularly if such information is not intelligible to the consumer….???

M.R. Ramesh VS M/S Prakash Moped House

•  Hero Honda CD-100 that Mr. M.R. Ramesh bought in Bangalore in February 1993. His contention was that at the time of purchase, he was assured that the bike would run 80 km on a litre of petrol. However, the bike gave 22 km less than promised. He filed before the National Consumer Disputes Redressal Commission, New Delhi, an advertisement published in October 1993, wherein the manufacturer had made such a claim about the mileage of the motorcycle.

• The manufacturer, on the other hand,

brought on record advertisements issued during the period which carried an asterisk on the numerical figure of 80 and at the foot of the advertisement in small print, said “at

40 kmph/130 kg”   , thereby qualifying the claim.

• The Commission said:   “Such an

advertisement as put out by the respondents is misleading. It amounts to unfair trade practice. When the respondents claimed that motor cycle can give mileage of 80 km per litre, they cannot just be absolved of their responsibility not to clearly indicate that this would be so when the motor cycle is driven at a speed of 40 kms per hour and the load would be 130kg.

• Simply by putting an asterisk and then

indicating such condition in small print at the bottom of the advertisement is certainly deceptive. Moreover, when it is stated that this mileage can be obtained at a particular speed and load under “standard conditions”,

then those standard conditions must be indicated so that the consumer is duly informed of the bargain he is in it. Rather in our view any such advertisement should take into account the conditions of the roads in the cities.

• In another such case…

• The manufacturer in this case argued that the

mileage claim is always based on   ‘Ideal conditions’. The foremost condition is that of  a ‘Single Rider’. There were, however, other conditions as well such as ideal speeds, recommended tyre pressure, lubricants, constant running, the number of starts and stops to the vehicle, the road condition, the driving habits of the driver, etc. and 30 percent variation, was possible.

•  The advertisement proclaims that “if  its your

dream to Secure 87 km/pl on an average then buy Boxer CT Motorcycle. There are other advertisements where it is written ‘87 km/pl, 0 percent interest, last two days, scheme closes, hurry up, etc.’

• The advertisement issued by the Buddhist Mission Dental

College and Hospital, in 1993, inviting applications for admission to the Degree Course of Bachelor of Dental Surgery. This is what the advertisement said: “The Buddhist Mission Dental college and Hospital (under Magadh University, Bodh Gaya, and Dental Council of India, New Delhi, Siddharth Nagar, New Bailey Road, Patna-801305).

• A premier Dental College of Bihar established and managed

by Vishwa Buddha Parishad under Article 30(1) of the Constitution of India, fulfilling all the criterion and conditions of Dental Council of   India”. Clearly, the impression created by advertisement was that it was affiliated to Magadh University and was recognized by the Dental Council of India. Both were however false.

M/s Cox & Kings Pvt. Ltd v/s Mr Joseph A Fernandes R.P no. 366 of 2005.

•   Facts: An advertisement on cruise travelling from Bangalore to Malaysia and Singapore and back contained a statement   “Two   nights /three days

cruise”. The Star cruises confirmation voucher given to the couple however mentioned the embarkation and disembarkation timing as ‘Leave Singapore at 23.59 hrs on 17.4.2002 and arrive at Singapore on 19.4.2002. A couple who opted for the tour lodged a complaint with the District Forum alleging that the tour was for only two nights and 1 and half  days.

•  Cox and Kings knew fully well that the cruise

actually lasts only for one and a half days but they had falsely advertised that it was for 3 days. Counting one minute short of midnight as a day was nothing short of outright cheating by the company…

•   The claim of the company that issuance of 

such advertisement is a universal practice compelled the commission to condemn the practice in even stronger terms…

•  Unfair trade practice…

•   25000/- compensation ordered and not to