Charging More Than Displayed Tag Price : Delhi District Commission Holds Siyaram Silk Mills Liable

Brief background:

Siyaram Silk Mills launched a promotional scheme of '2+2' where customers had to pay the full amount for two shirts and were entitled to other two shirts for free. The complainant believed the said scheme in good faith and placed an order for four pieces of white shirt @ Rs. 999/- each. Thus, he was to pay Rs. 2000/- only as per the scheme. However ,later on, the complainant was asked to pay Rs.1050 for one of the shirts i.e. Rs. 50 extra. It was stated that although the extra money was unreasonable, still it was paid by the complainant as it was a small amount. Thus, the invoice was raised for Rs. 2050/- for four shirts [one shirt for Rs. 1050/- and other three for 999/-]. However, to the shock of the complainant, on reaching home he found two shirts to be of a lesser amount i.e. Rs. 799/- and not Rs. 999/- as expected. Despite service of legal notice for deficient services and visits to the showroom, the grievance of the complainant remained unresolved. This led to the filing of a complaint before the consumer forum praying for appropriate compensation.

The complainant stated that the company had put two shirts of lesser amount in a packet and charged a higher price for the same. It was argued that the said act amounts to misrepresentation, unfair trade practice and deficiency in service.

No one appeared on behalf of the company. Hence, the district commission proceeded on the basis of submissions made by the complainant.

Observations:

The bench observed that despite service of notice to the company, it has not rebutted the statements made by the complainant. Hence, it was considered as deemed acceptance of all the allegations. It was further observed that the actions of the company constitute unfair trade practice as defined under Section 2 (r) (1) of the Consumer Protection Act, 1986. The bench held that the complainant has directly suffered due to the deficient services of the company which has caused him mental agony and harassment. Thus, the complaint was allowed by the commission.

Following reliefs were granted:

1. Rs. 400/- along with interest @ 9% was directed to be paid to the complainant.
2. Rs. 25000/- was also ordered for mental pain, agony and harassment.

Case name: Mohit Sood vs Siyaram Silk Mills

Case number: Consumer complaint 10/2020 [District Commission, North]

Date of decision: 21.11.2024

Click Here To Read/Download The Order