Back
DELHI STATE CONSUMER DISPUTES REDRESSAL COMMISSION
N.P. Kaushik, Member (Judicial)
READERS DIGEST - Appellant
Versus
R. BALAMMA - Respondent
First Appeal No. 341 of 2012 (Arising out of the order dated 03.02.2012 passed in Complaint Case No. 690/2009 by the District Consumer Disputes Redressal Forum (New Delhi)Barracks Kasturba Gandhi Marg, New Delhi)
Decided on : 05-12-2016
Deceptive marketing practices and unfair trade practices are prohibited under the Consumer Protection Act, and liability can be imposed for mental and physical suffering caused by such practices.
Headnote:
Consumer Protection Act - Deceptive Marketing Practices - Section 2(r)(3), 2(1)(r)(3a), 2(1)(r)(1)(iv), and Section 14
Fact of the Case:
The appellant, Reader's Digest, engaged in deceptive marketing practices by luring an 86-year-old complainant with false promises of winning cash prizes and a car through sweepstakes. The complainant suffered mental and physical trauma, leading to the filing of a complaint.
Finding of the Court:
The court found the appellant guilty of unfair trade practices and deceptive marketing. It observed that the appellant failed to produce evidence of sending promised items to the complainant and relied on provisions of the Consumer Protection Act 1986.
Issues: The issues revolved around the appellant's deceptive marketing tactics, the complainant's status as a consumer, and the lack of evidence supporting the appellant's claims.
Ratio Decidendi: The court held that the appellant's deceptive marketing practices violated consumer protection laws and imposed liability for the complainant's suffering. It also noted the appellant's contradictory statements and drew adverse inferences.
Final Decision: The court modified the relief clauses, ordering the appellant to pay Rs. 5 lakhs to the complainant for harassment and frustration and deposit Rs. 50 lakhs as punitive damages in the Consumer Welfare Fund.
ORDER
N.P. Kaushik, Member (Judicial) - Reader Digest K-9, Connaught Circus New Delhi-110001 (hereinafter referred to as the appellant) has filed the present appeal against the orders dated 03.02.2012 passed by the Ld. District Forum VI New Delhi. Vide impugned orders, following directions were passed against the appellant:
"i. to pay compensation of Rs. 2.00 lakh for emotional suffering to complainant, an aged lady for mental agony, frustration, disappointment with OP and who suffered loss, physically and self intellectually suffocated by shock of feeling of being cheated, taken for a ride, and pain of bona fide long waiting for gifts promised, trouble taken with courage in old age to bring the matter to notice of court for class action, by personally coming to Forum, with a supporting stick in her old age of 82 years.
ii. to stop unfair trade practise of sweepstakes lottery, any game of chance in connection for becoming a subscriber of its priced magazine, which is not freely given.
iii. to stop addressing personal letters in the tone and manner of breaking news and declaring potential winners, which advertised unnecessary draw a person in whirlpool of hopes of getting superrich overnight.
iv. to publish results and methodology of the draw in question, in its forthcoming magazine, and to place the same in court. It will also show whether name of complainant was included in the draw and list of those who sent 'NO' replies envelopes and whether they were also included in the drawn.
v. to pay Rs. 25,000/- to amicus curie Mr. Singh who assisted the court and complainant in explaining the case.
vi. to deposit Rs. 10.00 lakhs as punitive damages for unlawful trade practices with Consumer Welfare Fund."
2. Parties hereinafter shall be referred to by their status in the original complaint. 'Reader's Digest' a widely read magazine (in short the OP) fuelled desires of becoming a millionaire in the mind of Smt. R. Balamma the complainant by writing a personalized letter. Before proceeding further it may be mentioned here that the complainant is a senior citizen of 86 years. She was in Delhi at the time of filing the present complaint but later on she appears to have shifted to Mysore from where she has been travelling to Delhi for fighting the present litigation. Coming back to the letter sent to her by the OP, the same reads as under:
"Frankly, I don't understand how anyone could say no to having a chance of becoming a millionaire. May be it's hard to imagine being fortunate enough to win upto Rs. 24,00,000.00/- in cash. But someone's got wir... and it could be your, Ms. Balamma.
No other entry has a better chance of winning the Grand prize worth Rs. 22,00,000/-. and if you reply within the next 14 days and happen to be Grand Prize Winner, you would receive the early reply Bonus worth Rs. 2,00,000.00 on top of it you're your winnings could be worth Rs. 24,00,000.00.
Just imagine what your family could do with prize like this. Then imagine missing out because you and you alone missed taking the one simple action of returning your Final stage certificates for entry into the Sweepstakes.
You may wonder just how many people in your city are getting this chance to win these big prizes. Well, I can tell you that this invitation goes to less than one percent of people in New Delhi.
As an added Bonus, on receipt of your YES reply, we will send you a set of Free Mystery Gifts. Check you many gifts you are eligible to get simply lift the flap of the FREE Gifts flyer and see how many Stars are there, because that's the number of Free Gifts you get with your annual subscription to Reader's Digest. You risk nothing by saying 'Yes to our offer. Moreover, there is no need to send money-it will be sufficient for you to pay the Postman when he delivers you the Mystery Gifts by VPP.
URGENT:DISCOVER THE SECRET OF YOUR CAR KEY
But your offer benefits don't e
