December 2024

10 Dec 2024 The minister underscored the immense potential of India’s e-commerce sector, describing its future as bright and transformative. He stressed that while digital advancements offer vast opportunities, it’s vital for consumers to make informed decisions. “Our government believes it is equally important for our consumers to feel confident and make informed choices,” Joshi stated. Consumer Protection and E-commerce Growth Joshi warned of risks associated with the rapid expansion of e-commerce, particularly concerning consumer protection. Under Prime Minister Narendra Modi’s leadership, multiple initiatives have been launched to create a trustworthy e- commerce environment. Rules now mandate online platforms to provide accurate product details, clear pricing, and disclose the country of origin. The minister pointed out that some platforms promote specific brands and deflect responsibility when complaints arise. His comments are significant as e-commerce giants face allegations of deep discounts and preferential treatment of sellers in India. Joshi emphasized that companies must prioritize consumer interests to build trust. India’s Economic Growth and E-commerce Joshi attributed India’s e-commerce momentum to strong economic growth, robust digital infrastructure, and affordable data. “Our consumer base is good…we are the fastest-growing economy of the world,” he noted. He predicted that India would soon become the third-largest economy globally, expanding its customer base significantly. The minister shared a personal anecdote about his wife’s experience with an online purchase. She ordered a sari but received a low-quality product, prompting her to file a complaint for a refund. Joshi urged companies to ensure consumers do not encounter such issues. Sustainability Initiatives in India India is making significant progress in sustainability by advancing renewable energy goals. Joshi mentioned that in 2014, India generated 75 gigawatts of renewable energy. Today, this figure has surpassed 212 gigawatts. The installed capacity exceeds 43%, with a target of 500 gigawatts by 2030. Joshi concluded by highlighting India’s commitment to renewable energy. By 2030, half of India’s energy needs will be met through renewable sources. This reflects the country’s dedication to sustainable development and reducing its carbon footprint. Source: Good Returns

09 Dec 2024 Bhubaneswar, Dec 9: The Indian government is set to enforce mandatory hallmarking for gold bullion, a move aimed at guaranteeing the purity of gold products and safeguarding consumers against quality issues. Consumer Affairs Secretary Nidhi Khare made this announcement at the Gems and Jewellery Conference organized by the Confederation of Indian Industry (Cll) in New Delhi. Khare revealed that more than 40 crore gold jewellery items have already been hallmarked, with over 4 lakh gold items receiving hallmark certification daily. The new regulation, combined with the introduction of a six-digit unique ID system, is expected to significantly enhance trust and transparency in the jewellery sector. This system will help ensure consistent quality, improve traceability, and foster consumer confidence. The automation of the hallmarking process, incorporating API-based integration of XRF data, has streamlined operations and boosted efficiency for both jewellers and consumers. Khare also emphasized the importance of building global brands in India’s jewellery sector, urging a blend of traditional craftsmanship with modern consumer demands for international markets. Since the introduction of mandatory hallmarking, the number of registered jewellers has surged from 34,647 to nearly 1.94 lakh, and the number of assaying and hallmarking centres has grown from 945 to 1 ,622, strengthening the infrastructure for quality assurance. Source: Prameya News

05 Dec 2024 The Central Consumer Protection Authority (CCPA) has asked Ola Electric Mobility Limited to provide additional documents and information on show cause notice it issued earlier over alleged consumer rights violations and unfair trade practices. The CCPA has given Ola 15 more days, starting from the email communication on December 4, to submit the required details, the company said in an exchange filing on Thursday. Ola Electric has confirmed it will comply and provide the necessary information within the specified timeframe. Ola Electric was issued a show cause notice by the CCPA in early October for alleged violations of consumer rights, misleading advertisements, and unfair trade practices. The notice required the company to provide additional documents and information. In a filing, the company, led by Bhavish Aggarwal, had stated that the CCPA’s notice does not impact its financial, operational, or other business activities, nor does it involve penalties or fines. As of Thursday, Ola Electric’s shares were trading at Rs 98.50 on the BSE. The company has faced mounting customer complaints regarding after-sales service, software glitches, and hardware issues with its scooters. Ola Electric’s market capitalisation recently dipped below $5 billion for the first time since its public listing. In October, Ola Electric’s CEO, Bhavish Aggarwal, had a heated exchange with comedian Kunal Kamra on social media concerning service issues with the companys e-scooters. Despite these challenges, Ola Electric is focusing on expanding its service network, planning to double its service centres to 1,000 by December through its ‘Hyperservice’ initiative. Ola’s market share in the domestic electric two-wheeler segment dropped to 27.9 per cent last month, according to data from the Vahan portal. Competitors like Bajaj Auto, TVS Motor, and Ather Energy have gained ground with market shares of 21.4 per cent, 20.2 per cent, and 14.8 per cent, respectively. Source: Economic Times

10 Dec 2024 The District Consumer Disputes Redressal Commission (Commission) in Delhi’s Central District found Emami (opposite party/OP) guilty of unfair trade practices and misleading advertisements related to its ‘Fair and Handsome’ fairness cream. The coram of President Inder Jeet Singh and member Rashmi Bansal found that the company’s claims of providing fair skin to users in three weeks were deceptive and unsupported by evidence, violating consumer rights. “The conclusions drawn above, makes it crystal clear that the OP is offering the product – Fair and Handsome cream with few, negligible and limited instructions on the packaging and labeling that its use regular use for three weeks will result into fairness in the skin of man, despite knowing that instructions mentioned are incomplete instructions and for want of following the other requirements, it will not give the result claimed. …this proves misleading advertisement and unfair trade practice that in order to promote product and sales, such strategy was adopted by the OP,”the Commission held Therefore, it ordered the withdrawal of all such misleading advertisements and packaging while also awarding punitive damages of lakh out of which lakh is to be deposited with the Delhi State Consumer Welfare Fund and has to be paid to the complainant. ” The complaint is partly allowed in favour of complainant and against the OP while directing OP (i) 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; (ii) to deposit punitive damages ofRs.14,50,OOO/- in the Delhi State Consumer Welfare Fund (its receipt will be furnished to this Commission in time), (iii) to pay balånce punitive damages Rs. 50,000/- (which includes loss amount ofRs.791-) to the complainant as determined and payable and (iv) to pay costs ofRs.10,OOO/- to the complainant. The amount will be deposited and payable within 45 days from the date of this order,” the Commission held. This is second time the Commission has passed this order. In 2015, it had ruled in favour of the complainant. However, upon appeal, the State Commission overturned this decision in 2017 and remanded the case back to the District Commission for a fresh hearing and also directed that the case should be decided after considering evidences of the parties and other material. The case arose from a complaint filed by Nikhil Jain (complainant) filed against Emami Limited alleging unfair trade practices and misleading advertisements for their product “Fair and Handsome Cream.” Jain claimed that he purchased the product for and used it as per the instructions provided. Despite this, the product failed to deliver the promised results, such as fairness and other benefits, making it defective. As part of the relief, he sought corrective advertisements for one year, punitive damages amounting to ₹19.9 lakh and litigation costs of ₹10,000. In defense, Emami Limited denied all allegations, asserting that the product was scientifically tested and complied with all regulatory standards. The company argued that the complaint lacked merit as there was no sufficient evidence to prove the allegations. They also contended that the complainant failed to provide proper proof of purchase and expert opinion regarding the product’s effectiveness. Emami further contended that the product had undergone various tests and was designed for specific conditions, such as protecting against UV rays and improving skin quality for users aged 16—35. However, the Commission rejected these contentions noting that the packaging and advertisements of “Fair and Handsome” were misleading since it created an impression that the product would deliver fairness within three weeks though the conditions required to achieve the promised results were not mentioned. The Commission deemed this to be an unfair trade practice. It added that the damages should be of such an extent that they would actually “pinch” the defaulter, so that it deters others from engaging in conduct similar conduct Accordingly, the Commission imposed lakh in punitive damages on Emami and directed the company to withdraw deceptive advertisements and packaging. The damages have to be paid within 45 days of the order. Advocate Paras Jain appeared for the complainant Nikhil Jain. Source: Barand Bench