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Contact: gcrout@gmail.com satiskumar@nic.in natarajan@nic.in sreecues@gmail.com Editorial Team: Gokul Chandra Rout Dy.Secretary Satish Kumar PSA/NIC Natarajan SSA/NIC Sreekumaran GN Consultant Inside this Issue: Class Action

against Nestle on Maggi

Onion Prices Amendments to

CP Act and BIS Act

Online LPG connection

Quote of the Month: “The One who can give the Consumer the best quality at lowest prices will certainly be at the head of the Industry, no matter what Goods he produces. This is the immutable Law”. Henry Ford

CONTENTS

Important judgments of NCDRC

Interesting cases resolved by Consumer Help lines

Consumer in the News

Consumers across the World

Consumer Complaints data of July 2015

Articles

New Initiatives

Events

Visits

Events scheduled for September 2015

V O L U M E 1 , A U G U S T

Journal of Consumer Research

An in-house publication of Department of Consumer Affairs,

Government of India ,Krishi Bhavan, New Delhi,

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SECTION I

IMPORTANT JUDGMENTS OF NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

LEELA G. NAIR v. K.P. HARIDAS (MEDICAL NEGLIGENCE)

First Appeal No. 522 of 2008 from Order dated 20.6.2008 in OP No. 6/05 of Kerala State Consumer Disputes Redressal Commission --- Decided on 25.3.2015.

Consumer Protection Act, 1986 – Sections 2(1(g), 14(1)(d), 21(a)(ii) – Medical Negligence –

Synopsis:-

Surgery performed to remove an ovarian cyst and repair of umbilical hernia – Instrument left inside – Corrective surgery performed – Mental agony and suffering – Compensation claimed – State Commission partly allowed complaint – Hence appeal – Had the requisite diagnostic tests been done when complainant returned to opposite party with some complaints, she would have been spared the pain and suffering of five months –Claimant must receive sum of money which would have put her in same position as she would have been if she had not sustained any wrong – Compensation enhanced.

The State Commission allowed the complaint holding Doctor and Hospital jointly and severally liable to pay compensation of Rs. 3,46,000, together with cost of Rs. 20,000, to the Complainant. Oriental Insurance Company Ltd. was directed to indemnify under the insurance policy. It was also directed that is the awarded amount was not paid within two months, it shall also carry interest at 10% from the date of the order.

The Complainant has filed an appeal seeking enhancement of the awarded amount. We thus, have case in which findings of fact have reminded unchallenged. Therefore, we do not deem it necessary to re-examine the evidence on which the findings of fact are based. Consideration of the appeal is limited to the prayer for enhancement.

The main grounds urged, focus on the physical and mental agony suffered by the Complainant due to—

(a) Negligence in the conduct of surgery on 1.4.2003 resulting in the surgical needle holder being left behind in the abdomen; (b) Failure of the Doctor to make a proper diagnosis of the real problem, even when she was readmitted to hospital for two days from 17th to 19th April, 2003, subsequent to the surgery of 1.4.2003, and (c) Failure to refer her to a specialist for proper diagnosis and treatment.

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It is also contended that it was a case of gross medical negligence for which punitive damages should have been awarded. In this view of the matter, the question that arises is whether the complainant has been adequately compensated or not.

Hon’ble Supreme Court has held that there is no restriction that Courts can award compensation only up to what is demanded by the complainant, “ It is the duty of Tribunals, Commission and Courts to consider relevant facts and evidence in respect of facts and circumstances of each and every case for awarding just and reasonable compensation. (Para 84) “The principle of just and reasonable compensation is based on “Restitution In Integrum” that is, the claimant must receive the sum of money which would put him in the same position as he would have been if he had not sustained the wrong.

Compensation was therefore, enhanced by Rs. 3,00,000. Further, having held it to be a case of gross medical negligence, we also award a sum of Rs. 1,00,000 as punitive damages. Consequently, the total award amount stands enhanced from Rs. 3,46,000 to Rs. 6,96,000.

E-COMMERCE JURISDICTION – Marwar Engineering College and Research Centre v. Hanwant Singh, IV (2014) CPJ 582 (NC), RP No. 2554 of 2014.

Digital e-commerce (air booking) – Consumer’s place of e-commerce transaction is the jurisdiction to file a complaint

Ram Gopal Agarwal and his wife wanted to travel from Delhi to Jaipur from Shillong where they live. Agarwal made internet bookings for two tickets on Air Deccan’s flight departing on April 4, 2006. The payment was made through credit card. When they alighted at Jaipur, their baggage was missing. He filed an FIR and gave missing baggage letter acknowledged by Airline staff. He had to spend Rs. 25,000 on new clothes and other necessities. Part of the baggage was traced on April 24, 2006 & while the rest was found after two months, on June 3, 2006, at Guwahti. Agarwal requested the airline to deliver the baggage to him in Shillong, but it refused to do so, forcing him to travel to Guwahati at his own expense and waste two days to claim the baggage, which was damaged and weighed 13 kg less than before.

He filed a complaint in Shillong district forum. But the airline challenged that there is jurisdiction error. Agarwal has claimed deficiency in services on flight from Delhi to Jaipur. The forum awarded the Agarwals Rs. 71,558 for the loss and damage of baggage for purchase of new clothes and necessities, cost of travelling to Guwahati for baggage collection along with interest at 12% p.m. from the date of the complaint. The State Commission upheld the order. The State Commission noted that, “The advance in technology and the missing links in the law relating to jurisdiction come to light only when consumers get raw deal. Global connectivity has made territorial boundaries porous, raising a concern whether jurisdiction should remain confined to the place of business of the merchant”.

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Considering the provisions of the Contract Act and the Information Technology Act, when an air ticket is booked through internet, the ticket is sent by e-mail. The booking request would be an offer, the e-mailing would be acceptance. So, the contract for purchase of the air ticket would be taken to be has been made at the consumer’s place of residence, where the acceptance of the contract is communicated.

The Agarwals reside in Shillong from where they had done their booking via internet, making online payment from a bank account in Shillong. The tickets were dispatched by e-mail and the acceptance was communicated in Shillong. The Commission, accordingly, concluded that part of the cause of action had arisen in Shillong and the complaint could be filed there. Note:- In this Digital Era Reservation/Purchases/Booking made online and complaints can be filed at the place where Credit Transaction done online.

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DEFICIENCY IN SERVICES- Railways – G.M. Northern Railways v. Manoj kumar, (2014) cpj 559 (nc): 2014 (4) cpr 88 (nc), rp no. 3208 of 2014.

Manoj Kumar booked a three tire AC ticket for travel from Allahabad to Delhi in Lichvi Express and reached Allahabad station on 8-3-2012 and found this train was not running from last few months. He filed a complaint in District Forum & Railways did not appear & hence was proceeded. On his RTI enquiry, Railways replied that the train was cancelled from 29-12-2012 to 27-2-2012. District Forum awarded compensation of Rs. 25,000 to Manoj Kumar & if it not complied with in 30 days of the order, it will attract interest of 12%. Railways’ appeal to State Commission was dismissed in limine. Railway filed a revision petition in the National Commission that due to unpredicted foggy condition, Railways Board cancelled few trains & this was informed to Manoj Kumar. National Commission dismissed the revision petition & held that gross deficiency in service by Railways because Manoj Kumar booked a ticket on Internet on 14-2-2013 for the travel dated 8-3-2013. The train in question was cancelled by the Railway schedule from 1-1-2013 to 17-2-2013 and cancellation was extended to 15/3/13. The least expected from Railways was to intimate Manoj Kumar about the cancellation of the train.

POSTAL SERVICES – Post Master, Station Kachi Guda V.G. Hanumantha Reddy, II (1994) CPJ 845 (NC). Articles for publications sent by speed post and delivered late . In this case, Shri G. Hanumantha Reddy, I.A.S. (Retd.) sent some article for publication by speed post, which was delivered late and hence the article was published in the Times of India without his photo. Hence he filed a complaint before the District Forum contending that had

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the photo reached in time his photo would have appeared in 6 lakh copies of the Times of India throughout the country, and hence for this deficiency in service he claimed a sum of Rs. 50,000 for damages and costs. The District Forum awarded Rs. 10,000 towards damages and Rs. 1,000 for costs. The Postal Department filed an appeal to the State Commission, Andhra Pradesh. The State Commission observed that the Postal Department was negligent in its service and as such responsible for this delay and since Mr. Reddy had missed a very rare opportunity of his photo being published in the Times of India, and needed no interference at the appellate stage and dismissed the appeal of the Postal Department.

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BANKS DO NOT COMPLY WITH THE CIRCULARS GIVEN BY RBI – DEFICIENCY IN SERVICES- The Vaidyanath Urban Co-op. Bank Ltd. V. Narayan S/o Shankarao Viragar, R.P. No. 2427 of 2012, decided on 3-2-2015.

Narayan Viragar, an Agriculturist from Maharashtra, had deposited a sum of Rs. 23,468 and Rs. 40,090 with Sanjeevani Co-operative Bank Ltd., which was later on merged with The Vaidyanath Urban Co-op Bank. On 8-4-2003, Narayan demanded return of Rs. 23,468 from Vaidyanath Urban Co-op Bank with interest and on 14-4-2003, he also demanded the sum of Rs. 40,090. Vaidyanath Urban Co-op Bank had deposited the said amounts in Account No. 22/295 and 22/293 in cumulative deposits. After maturity of the deposits on 5.5.2009, Narayan went to the manager of the Bank and demanded amount of Rs. 47,706 and Rs. 81,495. Bank refused to pay the said amounts and told Narayan that only basic sum would be returned to him. Accordingly, basic amount had been deposited in the account No. 221/114 on 24-1-2009.

Thereafter, Narayan filed consumer complaint against Vaidyanath Urban Co-op Bank alleging deficiency in service by illegally denying the interest and prayed that an amount of Rs. 63,537 be given to him along with an interest @ 18% and he may be given Rs. 7,000 towards compensation and Rs. 3,000 towards cost of complaint.

District Forum allowed the complaint and the same is affirmed by the State Commission that Rs. 24,238 and Rs. 41,405 be refunded along with general interest within 30 days, plus Rs. 1,000 towards compensation and Rs. 1,000 to relevant portion of Reserve Bank of India’s Circular, read as under:

As per this Circular, Banks have to inform the depositors in advance of their policy for renewal of overdue deposits. There is nothing on record to show as to whether Vaidyanath Urban Co-op Bank or Sanjeevani Cooperative Society Ltd., ever complied with the absence of non-compliance of the above stated guidelines, there is a clear cut deficiency in service on the

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part of the Vaidyanath Urban Co-op Bank.Revision Petition was dismissed with cost of Rs. 10,000 to be paid to Consumer legal Aid Account.

Note:- RBI give circulars to Banks regularly giving directions – When it is relevant to the Customers, they have to inform – otherwise, it will be deficiency of service by Banks.

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DEFICIENCY IN SERVICE – Interest not paid because scheme was discontinued without informing the bond-holder- Small Industries Development Bank of India (SIDBI) v. Dr. Sarswati Gupta, Appeal No. 291/200 of the State Commission, UT (Chandigarh) decided on 2-2-2015.

Dr. Saraswati Gupta purchased two Deep Discount Bonds of Rs. 2,500 each in the year 1993 from SIDBI. The face value of those bonds as mentioned in the bond certificate was Rs. 1.00 lac each as on 1.1.2018. Dr. Gupta had option to encash the said bonds at the end of 5th, 9th, 12th, 15th or 20th year as per their face values at the end of every such year. When Dr. Gupta visited SIDBI, she was informed that the scheme was cancelled, so she should withdraw her amount. She applied for the encashment of her bonds, and she received two cheques of Rs. 17,752 (Rs. 10,000 + Rs. 7752) which meant that interest was paid from 1993 till 2002 whereas it should have been paid till June, 2008. The fact that SIDBI did not inform her that scheme has been cancelled and they did not send the deposited amount with interest to her, alleging deficiency on the part of SIDBI, she filed a complaint in the District Forum. District Forum directed to SIDBI to pay interest @ 8% p.a. that is Rs. 19,200 from 01-02-2002 till 27-06-2008 and cost of Rs. 2,500.

State Commission dismissed appeal filed by SIDBI. In the revision petition in the National Commission SIDBI argued that they had published notice in all the papers and sent intimation to Dr. Gupta, under Certificate of Posting regarding redemption of Bonds. When SIDBI was asked to produce UPC receipt, they could not do so and submitted that during the floods in Mumbai, the original documents kept in basement were damaged. SIDBI did not produce the copy of letter and reminders to Dr. Gupta. In the absence of proof of intimation to Dr. Gupta as per terms and conditions of bonds, National Commission held that she was entitled to interest on the amount retained by SIDBI.

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INORDINATE DELAY TO CONSTRUCT – UNACCEPTABLE HOUING – Puneet Malhotra v. Parsvnath Developers Ltd., C.C. No. 232 of 2014 with IA/9215/2014, decided on 29-1-20015. Puneet Malhotra, Nitin Bhatia, Amit Bhatia, and Sunil joshan booked residential flats with the Parsvnath Developers Ltd. in a Complex known as “Parsvnath Palacia” which it planned to develop and construct in Greater Noida and a Flat-Buyer Agreement dated 28-12-2007 was executed between the parties. At one time all down payments were made except 5% was to be paid at the time of offer of possession. The construction was to be completed within thirty-sex months that is December, 2010, but Parsvnath Developers Ltd. stopped the construction in July 2008. Puneet Malhotra had taken a loan of Rs. 40 lacs from the ICICI Bank and was paying about Rs. 50,000 per month towards Equated Monthly Installments (EMI) of the aforesaid loan. Developer entered into an agreement with the Puneet that they would reimburse a part of the EMIs given till the possession was given, but they defaulted by October 2012. Reimbursement stopped completely. Due to this unreasonable and inordinate delay on the part of the Developers in completing construction of the project, the complainant is seeking refund of amount paid by him to the Developers, along with interest on that amount @ either 18% per annum or @ 24% per annum. He is also seeking Rs. 15.00 lacs towards damages, besides cost of litigation. National Commission observed as per the agreement between the parties developers were required to pay interest @ 24% p.a. in the event of delay on his part making payment to the dealer. Logically, if the seller is charging interest from the buyer @ 24% per annum, it should have no hesitation in paying construction of the flat within the time frame agreed between the parties. Due to steep appreciation in the market value of the land and the cost of construction of the residential flats in Greater Noida in the last about 7-8 years, Puneet cannot get a comparable flat either at the same price from which the dealer agreed to charge from them or even at the aforesaid agreed price plus interest thereon @ 18% per annum, by way of interest but also on account of loss of the opportunity, which the said buyer had to acquire a residential flat at a particular price. Despite making almost entire payment, Puneet did not get the residential flat and cannot afford to acquire another flat after 7-8 years of steep increase in prices. National Commission directed Parsvnath Developers Ltd. to refund the amount Puneet deposited with interest on that amount at 18% p.a. from the date of the deposit till the date of refund is made. This comprises 8% per annum on account of appreciation in the land value and increase in the cost of construction and 10% on account of interest. Note:- Unjust delay in giving possession of new flat after talking almost entire payment is gross deficiency in service by the developer. Refund with 18% interest (8% for appreciation of Land value and increase in cost of constructions and 10% on account of interest is just.)

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DEFICIENCY IN SERVICE – Bimanathi Srinivas v. Mallikajurna Agencies, Consumer Complaint No. 29 of 2008, decided on 24-5-2008. PREPAID CELL PHONE CONNECTION

Sriniwas filed a complaint against Mallikarjuna Agencies and Bharti Airtel Limited. He had bought a prepaid cellphone connection from them but due to severe disturbance in the network of Airtel his outgoing calls, even after repeated dialing were not getting connected and on the cellphone there was a display that network is busy. Sometimes it would connect for a few seconds and disconnect automatically and had to be reconnected. Because of this problem, he had to redial the same number again and again. Despite his several complaints to the Customer Care Centre of the Airtel, they did nothing except to mention that there was a problem of capacity on the tower and that they would solve the problem within a few days. Nothing happened for three months. Shriniwas filed a complaint in the District forum. The technical personnel of Airtel visited his village and observed that there were already two cellular towers in that area. They recommended another cellular tower to support their valuable customers more effectively because it was observed that the tower was opposite the bus stand which had many mobile users, used by floating population and hence, there was network congestion. It was argued by Airtel that the installation of a new cellular tower was a very elaborate activity as it would require them to identify a suitable building, procure material, build the tower and give electricity connection and as such, it involves a huge financial implication. Even after expiry of six months, the problem continued. Although Airtel had promised to erect a cellular tower in the vicinity, they did not produce any documents for the lease of land or any other payment for the same. The District Forum rejected the contentions made by Airtel directing them to pay Rs. 3,000 as compensation with 9% interest from the date of filing of the case along with Rs. 1,000 as costs to be paid within one month. It is to be noted that Sriniwas had claimed Rs. 1,00,000 without any evidence. It was held that Airtel should not have neglected their valuable customers and that promising satisfactory mobile service and not providing the same for over six months was obviously deficiency in service.

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INSURANCE CASES - New India Assurance Company Ltd. v. Rakesh Kumar, III (2014) CPJ 340 (NC) Revision Petition No. 2157 of 2014 decided on 1-7-2014. mediclaim insurance – coronary artery disease unknown prior to taking the policy MR. Rakesh Kumar took Mediclaim Policy from New India Assurance Company, from 31-5-2001 to 31-5-2012 for Rs. 11 Lakhs which was renewed till 31-5-2013. On 19-10-2012 he was operated for Coronary Artery Bypass Graft / Surgery and was discharged on 31-10-2013. Insurance company repudiated the claim on the basis of exclusion clause 4.3 stating that Mr. Rakesh Kumar was suffering from pre-existing disease like Hypertension, Diabetes Mellitus, which are known risk factors for coronary Artery disease and hence it is a preexisting disease which is not covered under the policy. The District Forum allowed the complaint and directed New India Insurance Company to reimburse the Mediclaim amount of Rs. 2,24,929, Rs. 50,000 as compensation for mental agony and harassment and Rs. 7,000 as cost litigation charge with interest @ 18% p.a. The State Commission dismissed the Appeal filed by the Insurance Company. National Commission held that heart condition was diagnosed 19 months after talking the policy. Although, Hypertension, Diabetes are risk factors for Coronary Artery disease, there is no proof that Mr. Rakesh Kumar was aware such disease at the time of taking up policy. Insurance Company cannot repudiate a genuine claim on hypothetical presumption condition Dismissed the revision petition.

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RAIN DAMAGE TO CAR – INSURANCE POLICY INTERPRETATION– Bharati Axa General Insurance Co. Ltd. v. Chandra Mohan Goyal (From the order dated 27-10-2014 in FA No. 1397 of 2014 of the Punjab State Consumer Disputes Redressal Commission at Chadigarh) Decided on 5th January, 2015. Chandra Mohan took a Motor Vehicle Policy from Bharati Axa General Insurance Co. Ltd. for his Hyundai i20 car for the period from 21-11-2010 to 20-11-2011 in July 2011; he went to Vrindavan and parked his vehicle at 4 p.m. Due to heavy rain, the vehicle got covered with water upto 2 ft. level. When the water level receded he called up the call centre of Insurance Company and the vehicle was taken to the authorized workshop of the company M/s Sheel Hyundai at Mathura. Since Insurance Company denied cashless repair, he had to engage a truck and carried the vehicle to Ludhiana paying a sum of Rs. 8,020. Then he got it repaired from M/s. M.R.G. Auto Pvt. Ltd. at a cost of Rs. 98,090. Insurance Company’s the surveyor assessed the loss at Rs. 13,950 and stated that the policy covering damage due to flood, cyclone, hailstorm, etc., does not include the loss to the Vehicle due to hydro static lock. District Forum accepted the complaint and directed Insurance Company to pay the claims on the basis of the bill submitted by Chandra Mohan along with 9% interest per annum from the date of lodging of payment till its payment and Rs. 2,000 at cost.

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State Commission dismissed the appeal by Insurance Company, and hence the revision petition. National Commission also dismissed petition filed by the insurance company that loss by floods etc. is basically being covered and the hydro static lock happened when water enters the engine of the vehicle. Any damage on account of static lock would be covered in the policy unless expressly excluded because the vehicle is covered for loss by foods. Note:- Piecemeal Coverage and exception clauses by insurance policy have to be checked minutely with magnifying glass. Often Consumer does not know what he is being insured for.

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MEDICAL NEGLIGENCE - Patient died during physiotherapy due to faulty and unmaintaned therapy machine– Anamika Sharma, Dr. Shankar Rao Keshav Rao Sonwane v. Chhattisgarh Hospital, Anamika Sharma, II (2014) CPJ 265 (NC), F.A. Nos. 451 of 2010 and 3 of 2011. Anamika Sharma filed this complaint regarding death of her husband late Shree Sudhir Sharma. He was 33 years old, working as a Lecturer in Chemical Engineering Department, at Raipur Institute of Technology. He was suffering from low backache and he was taking physiotherapy by Dr. Shankar Rao Sonawane at the Centre of Chhattisgarh Hospital by paying Rs. 20 per day from 28-5-2007 to 2-6-2007. On 2-6-2007 while receiving physiotherapy (IFT) he suddenly died. Dr. Sonawane had gone somewhere leaving the patient alone during physiotherapy using faulty IFT electric machine. State Commission held Doctor negligent and directed Hospital to pay Rs. 5 Lacs compensation with interest at 6% per annum, from the date of complaint along with Rs. 3000 as costs. Anamika filed an appeal for enhancement of compensation and Dr. Sonawane applied to dismiss the complaint. After perusing the Post-Mortem Reports opinion given by Dr. R.K. Singh, the Head of Department of Forensic Medicine, Pt. Jawaharlal Nehru Medical College, Raipur after police investigations and concluded that the hospital did not take annum maintenance contract for the said machine and failed to provide proper IFT machine which did not regulate flow of electricity in Dia Therapy Machine which caused death of Mr. Sharma. National Commission considered untimely death of Mr. Sharma at the age of 32 years and calculated income till the age of 60 and to provide succour to Anamika. National Commission enhanced the compensation to Rs. 15 lacs to be paid by Dr. Sonawane and Chhattisgarh Hospital jointly and Dr. Sonawane to pay Rs. 2 lacs and compensation would carry out interest of 6% per annum from the date of filling the complaint.1

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MISCONCEIVED COMPLAINT DISMISSED WITH PENALTY- UNFAIR TRADE PRACTICES – M. Pethu Mariyappan v. Tamil Nadu State Transport Corporation (Madurai) Ltd., II (2014) CPJ 15 (NC), R.P. No. 2122 of 2012 along with I.A. No. 5826 of 2013 and I.A. No. 5827 of 2013 Mr. Mariyappan travelled from Madurai to Thootukudi in the bus belonging to Tamil Nadu Government which was to give super-fast services. The conducting demanded Rs. 60 for 1 to 1 service, although normal fare was Rs. 48. District Forum directed TNSTC to pay Rs. 10,000 compensation & Rs. 5,000 for cost, but State Commission dismissed the complaint & allowed appeal of transport authority. Having lost the case, Mariyappan approached National Commission which dismissed the petition & asked him to pay Rs. 5,000 to Consumer Legal Aid Account. It held that this bus was a super-fast service run by transport authority with special board ‘Special Service’ and ‘Fare as Rs. 60’, due to the festival season before Dipawali. Mariyappan abused the process of law and wasted precious time of Commission by filing the meritless petition. UNFAIR TRADE PRACTICE – PROMISE MADE AND NOT KEPT- Tara Homeopathy Clinic v. Rajesh Kumar, V (2014) CPJ 140 (Punj) F.A. No. 1413 of 2013 decided on 20-2-2014. Rajesh Kumar and Sanjeev read an advertisement in ‘Dainik Bhaskar’ newspaper dated 12-7-2012 to the following effect: “Baldness can be eliminated within a few days, stop ‘hair falling’ within a few days and grow permanent hair naturally (Tara Homeopathy Clinic in 11 State, 31 cities, 41 branches, 95 doctors).” Rajesh Kumar and Sanjeev approach Tara Homeopathy Clinic which assured them that after completing the full course of medicines, ‘hair falling’ will stop and natural hair will grow and they will get rid of baldness. They agreed, paid Rs. 19,800 each for the treatment. Although they took the entire treatment, neither new hair grow nor hair falling stopped instead there was more baldness. Clinic them to wait for some time, but yet no relief was there. District Forum held that the advertisement given by Tara Homeopathy Clinic is misleading & tantamount to unfair trade practice. The clinic did not lead any medical evidence to prove that the baldness can be removed by homeopathy treatment. District Forum directed the Clinic to refund Rs. 19,800 along with Rs. 10,000 as compensation and litigation expenses. The Clinic filed appeals that there was no guarantee offered in Registration form and hence complaint should be dismissed. The photographs were seen that showed that instead of natural hair growing approximately 80% of his hair had fallen. State Commission dismissed both the appeal. Note:- Promising results through advertisements which may or may not work out unfair trade practice.

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TOUR ORGANIZER LURED TOURIST WITH FALSE INFORMATION- TOURS – Orbit Tours and Trade Fairs Pvt. Ltd. v. Vivian Rodrigues, R.P. No. 1551 of 2013 with I.A. No. 2699 of 2013 Vivian Rodrigues & his friends accepted the offer of Orbit Tour to participate in China Tour from 25-4-2005 to 30-4-2005. They paid Rs. 77,700 (US $ 1468) to participate in “Canton Fair, 2005” where about 7500 stalls of different displays are available with modern technology. They were disappointed because furniture and interior fair was already finished prior to their visit. The class accommodation as promised was not provided and also the air conditioning at the lodging was out of order for more than 3 hours causing great inconvenience. Being dissatisfied with the tour, they sent notice to Orbit to refund the money but was refused by Orbit. District Forum accepted the complaint & directed Orbit to refund Rs. 17,700 with a cost of Rs. 2000. When a State Commission was hearing the appeal Vivan Rodrigues & his legal heirs were brought on record. So his name was deleted. State Commission concurred with District Forum’s order. In a National Commission Orbit argued that information given in the fair websites suggest that Orbit does not give guarantee or are responsible for any replacement or shifting of product profile. The National Commission concurred with the order given by State Commission & dismissed the appeal with cost. The tour organizer lured the customers by giving false and misleading advertisement by which their complainants wasted their time & money as they could not visit the furniture booths fair, which was of their main interest.

Section II

INTERESTING CASES RESOLVED BY CONSUMER HELP LINES

National Consumer Helpline – Success Stories

1. NCH Complaint no: 557524 Sector : Banking -: Citibank NA

Problem Reported: Complainant has reported a fraudulent transaction on 10th Sept 2014 of a total amount of Rs. 16970/- on his credit card. Lodged FIR and blocked the credit card immediately. The Bank put the blame on the customer saying that the transaction of Rs 10,410/-was done from I PIN and is hence genuine, which the customer has to pay. The remaining amount of Rs 6560/- was waived off by the bank.

Resolution provided by company after escalation from NCH: The balance amount of Rs 10,410/- was credited to his account

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2. NCH Complaint no: 569782 Sector : Tours & Travels : Makemytrip.com

Problem Reported: Complainant booked round ticket from Delhi to Silchar on 20th Nov. 2014, On 24th Dec 2014, he cancelled the tickets and got a written confirmation from makemytrip.com of the refund of Rs 17867/-, to be credited by 2nd January 2015. Customer did not receive any refund till March 2015.

Resolution provided by company after escalation from NCH: Despite initial reluctance and vehement refusal, the company processed the full refund of INR and credited the same to the complainants credit card.

3. NCH Complaint no: 595630

Sector : DTH/Cable - Convergence Company : Tata Sky Limited

Problem Reported: Tata sky DTH connection id – 1047018146 Facing difficulty in receiving Tata Sky facilities and signals. Despite repeated complaints, signal issues were being addressed temporarily and problems would re-occur time and again. Moreover the person who last visited his site misbehaved with family members.He was charged Rs. 270 which was automatically debited from his account for service engineer’s visit. Some English services were automatically activated on his connection for which he was charged Rs. 50 per month. Several requests were made to customer care to stop these services but the services continued and the deducted charges were not reversed. Customer had registered the complaint with the Nodal officer but no action had been initiated.

Resolution provided by company after escalation from NCH: Resolution provided on escalation were :

Picture related issues resolved post installer visit. Reversed Rs.270.00{ Visit+ Handling Charges )as a service gesture . Deactivated Active English Monthly Pack & passed subscription credit of Rs.294.63.

4. NCH Complaint no: 583209

Sector : E-commerce - Convergence Company : Paytm.com Problem Reported: Complainant had ordered a Sony power bank for Rs. 999/- by Paytm wallet. On delivery on 3rd Mar, 2015, he found it defective, so he returned it through courier, it reached the company on 16 Mar. The company refused to accept receiving the product, despite the complainant having the delivery confirmation message Resolution provided by company after escalation from NCH Escalation by NCH: The customer has received the refund of Rs 999.

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5. NCH Complaint no:571823

Sector : NBFC – Consumer Loan -Convergence Company : Bajaj Finserve Limited Problem Reported: loan taken under proper agreement, which has been paid up fully. NOC obtained on 19/02/2015. The company is now harassing him stating that there is an outstanding amount of Rs. 17000/- Resolution provided by company after escalation from NCH : The company responded that there was a technical error, which resulted in the account being linked erroneously to another ID. The same was rectified. Also, the company confirmed that there would be no impact on his CIBIL scores, as the necessary corrections have been made.

6. NCH Complaint no. : 559543

Sector : Telecom - Convergence Company : Aircel limited Problem Reported : Complainant has an Aircel prepaid number, and his complaint was that since the last one month, approximately Rs. 100. has been deducted by the company from his mobile connection. He complained to Aircel Customer care many times, but did not get any satisfactory response. Resolution provided by company after escalation from NCH : When the complaint was checked in the Airtel system, the amount was deducted against “clicked on wap link on 25/12/2014 and activated JUMPGAMES service’ for which Rs 70 was deducted from customers account. This was communicated to the complainant. However, as a goodwill gesture, the company gave a waiver of Rs 70. The complainant was satisfied 7. NCH Complaint no. : 590709263815

Sector : Product – Mobile Handset,Company Name : HTC Corporation Problem Reported : Complainant had bought a HTC Desire 816 handset which was still under warranty. He handed over to the service centre for repairing on 8th April 15 for non functioning of its touch, volume & power keys . The same was not repaired and returned on 13th May 2015 on the pretext of shortage of required parts. Several emails & calls sent to HTC customer care were of no use. Resolution provided by company after escalation from NCH : Complainant has been

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informed to either replace his handset with a new unit or take an upgraded model on additional payment.

8. NCH Complaint no : 3407010962715

Sector : Banking- Company : ICICI Bank Limited

Problem Reported : Consumer Complaint is regarding ATM cash withdrawal. The complainant tried to withdraw money on 26 Jun at 2.12 pm of an amount of Rs. 20,000 but the ATM machine showed insufficient balance and the transaction was declined. However money from her account was debited. She raised the request on phone banking but they replied that the amount was fully paid. She then visited the Gurgaon Sun city branch of the bank with a request to see the CCTV footage for the timings (2:10 - 2:12 pm on 26th June 2015) The Bank Branch showed her some screen shots not the complete video. The timings looked at were based on the cash dispensed at the time notified (2:12 PM). The footage showed an unknown person at one of the ATM machines, dispensing cash out of the machine at that time. Resolution provided by company after Escalation from NCH : The disputed amount 20000 Rs. was credited back to the customer's account.

9. NCH Complaint No: 430379214419 Sector: Airlines ,Company: Jet Airways

Problem Reported: Complainant has booked a ticket on Jet Airways for 7th March, 2015 for two passengers travelling on 29th May, 2015. While booking the ticket he booked ‘Special Fare’ category under ‘Best Fare of the Day’. After the ticket was purchased, one of the passengers decided not to travel due to personal reasons. He was told that as the ticket was booked as a ‘non-refundable’ ticket, only taxes will be refunded. His concern was that during booking it was no where mentioned that this ticket is non-refundable. He highlighted his concern to customer care of the Airlines as well as to the nodal officer of the Airlines, but was denied the full refund.

Resolution provided by the company after escalation from NCH: Despite initial refusal to the complainant, the company processed the full refund of Rs 5211/- and credited the same to the complainants credit card 10. NCH Complaint no. : 616375

Sector : Tours and Travels , Company Name : My Air ticket Pvt. Limited

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Problem Reported : Consumer had booked two round air tickets from Delhi to Washington via the United Kingdom for two persons through My Air tickets and paid the full amount charged ie Rs 1,33,432 on June 30, 2015, Company had confirmed by email that the tickets for two persons from Delhi to US and Back will be delivered within 72 hours before the schedule departure of flight i.e. 6th August 2015. However, the company has not given the tickets at late as 12 hours prior to the flight taking off. The company kept delaying delivery of the tickets under the pretext of some excuse or the other, finally asking him to reschedule his flight.

Resolution provided by company after Escalation from NCH : As the company is not a convergence partner of NCH, NCH had to persuade the travel company My Air Tickets extensively, by telecon and emails. This yielded positive results and the company finally delivered the tickets from Delhi to Washington and back.

Resolved Cases from State Consumer Helplines

1. British Airways refund US $400 for mishandled flight transfer Mauli Patel, Ahmedabad, was scheduled to travel to from London to India through a British Airways (BA) flight on 23 July 2012. But the BA authorities transferred her flight to Air India. Before checking in, Mauli was asked to pay us $ 400 as her hand baggage weighed 17 kg against the permissible 8kg. Mauli argued that she had been scheduled to travel by a BA flight, which had transferred her to the air India flight at the last minute and that the former allows passenger to carry hand baggage up to 23kg. All her reasoning failed and she had to pay us $ 400 and travel under protest. Back in Ahmedabad, she wrote to the British airways, saying “…they have charged me extra us $400 for hand baggage. Since I was expected to fly with British airways, I had 17kg in my hand baggage. Before transferring me to Air India, you…didn’t tell me about the norms…you should have arranged the journey according to your norms as I have paid for British airways tickets…” Mauli’s frantic e-mails to British airways for nearly seven month did not evoke a positive response from the airline. Frustrated, she knocked the doors of the state consumer helpline at Ahmedabad on 20 February 2013. State Consumer Helpline (SCH), Gujarat wrote to the British airways asking how it proposed to resolved Mauli’s complaint. BA disowned the responsibility of this goof-up, saying the travel agent had re-booked her to another flight and not its airlines: the truth was BA had transferred her to the air India flight. When BA was sent a copy of the boarding pass as a proof of this, it agreed to reimburse the cost of the baggage paid by Mauli to air India as a goodwill

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gesture. A thankful Mauli wrote to SCH on 27 may that she had received the full refund from British airways.

2. Home Town replaces a set of defective dining table and chairs Gaurang Kantilal Shah had purchased a six-seat dining table from home town for Rs. 14,999 in May 2012. But two months later, a chair broke when shah was having dinner with his wife. Fortunately, he escaped getting hurt. Acting on his complaint, home town sent a representative to repair the broken chair. He used white adhesive to fix it and asked shah to sign a job card saying the chair had been repaired. He signed it only after putting his comments “unacceptable job on a brand new product. It is not damaged; it is broken and beyond repair…absolutely unsatisfied”. Despite the adverse comments, the company did not respond. In response to shah’s repeated calls, the representative of the company would give rude answers and refuse to entertain any further complaints. A baffled Shah was told the set purchased was very delicate and had to be used accordingly. In September the chair again broke at the same part. But no one responded to the complaint reported at home town. Shah wrote to State Consumer Helpline (SCH) at Ahmedabad. After persistent follow-up by SCH, home town finally called Shah and asked him to select another set of dining table and chairs in replacement of the earlier one. A relieved shah wrote, “I thanks SCH Ahmedabad for your help, and appreciate the way the issue was handled by its active follow-up.” 3. Defective Blackberry replaced at SCH’ intervention On 19 may 2012, Mr. Viral Pandaya purchased a Blackberry 9220 from the mobile store for Rs. 10,992. The instrument started having some problems with the screen display while still in the warranty period and so on 28 November viral went to the store to get it repaired. The manager said that he would give him a call by the evening after the phone had been repaired. When Viral did not receive any information till the late evening, he visited the store. He was informed that his instrument had been sent to the Bangalore service station as it needed some repairing which could be done only there. A shocked Viral asked the manager how he could send his handset without his permission and did not even inform him. Viral had lost all his contact data which affected his business. Viral was told that his instrument had problems and that he would get a new piece in place of his old phone. When viral went to collect his phone, he was given a phone that was not a new piece. Viral immediately brought this to the manager’s notice and refused to take a ‘second- hand looking’ phone as a replacement. This led to a rude comment form the manage. Viral sent a legal notice to the mobile store on 11 January 2013 alleging deficiency in service and demanding Rs.10000. When this did not yield any response, Viral wrote to State Consumer Helpline (SCH), Gujarat. A strong letter from SCH and after a few follow-up, the mobile store

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replaced Viral’s BlackBerry with a new instrument. On 23 April, Viral thanked SCH for resolving the issue to his satisfaction. 4. SCH makes new India assurance pay med claim Jayshree Shah, 56, was operated on to remove kidney stones in a mobile operating van, run by the Gujarat kidney and stone foundation, on 7 July 2012. She informed New India Assurance on 19 July 2012 about her med claim amount of Rs. 27,006. Shah was disappointed when New India Assurance deducted Rs. 6413, out of which Rs. 5800 was the amount paid for the mobile van. In March 2013, when the company refused to pay the remaining claim amount, Shah approached State Consumer Helpline (SCH) at Ahmedabad to help her get claim amount from the policy for which she had been paying regular premiums. SCH contacted the company and explained that the expense made was towards the operation and therefore, should not be deducted from the reimbursement. In April 2013 New India Assurance paid the balance Rs. 6195, deducting the amount for nursing and dressing charges which were not covered under the policy. Shah wrote to SCH thanking it for its support to assert her right as a consumer.

5. Defective Washing Machine Mrs. Sushma from Rohtak purchased IFB- front loaded fully automatic washing machine in 2010. Machine started creating noise problems. Some parts of machine were changed. In 2012, machine again started showing problems in motor and pump. Again parts were changed by the local service center. In 2013 machine again started showing problems. No engineer came to check machine. More so customer’s number was added to block list and agency stopped attending his calls. There was sparking and noise problem in the machine. She filed complaint with the State Consumer Helpline Haryana Customer was advised to lodge written complaint to The Area Sales Officer. State Consumer Helpline also forwarded his complaint to the area sales officer. Very next day the company sent the engineer to his place and all the faults in the machine were removed.

6. Kent Water Purifier : Mr. Jagdish Singh from Panipat purchased 2 Kent Water Purifiers, one from Ambala (Military Canteen) and one from Delhi. His purifiers were not installed. He contacted customer care many times, but no one came to install them. Kent water purifier contact number is 01203870452. Complainant contacted State Consumer Helpline, Haryana through toll free number: 1800-180-2087. Helpline advised him to write a complaint to Area Sales Manager (ASM) of Kent Purifie. His complaint is resolved.

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7. Flipkart:- Mr. Nitish Geol from Bhiwani, Haryana had made an online complaint with state consumer helpline, Haryana on 17 September, 2014. He had bought a mobile named motog, 2nd generation, from FLIPKART ON 6 September, 2014. It was delivered on 11 September, 2014. On delivery when he opened the box he found 2-3 pixels of the phone defected. He immediately made re-placement request. M/S FILPKART told him that a technical person would call him by 14 September, 2014. On 15 September, 2014 he received call from that technical person. He told him to download some application to resolve his hardware defect. Consumer did the same, but matter was not solved. He again made return request on 15 September, 2014. They told him that he would be contacted by 16 September, 2014. Till filing of his complaint with helpline, no response was received from the company. He calls them 4-5 times, either they told him to contract him soon or put his call on hold. FLIPKART did not even entertain his request of transferring his call to their superiors. The matter was taken up by helpline with flipkart. The complaint of consumer was forwarded by helpline on cs@flipkart.com on 18 September, 2014. As per e-mail received from consumer on 26 September, 2014, he had got his product replaced from flipkart. 8. Samsung

Mr. Mohit bansal from Gurgaon had purchased a Samsung split AC 3 star, 1.5 tons from big bazzar, Ambience Mall, Gurgaon on 3rd may, 2014. After installation Samsung team informed him that compressor of AC is damaged and it needed to be replaced or refunded. On 29th may 2014 he was informed by the Samsung Company that he would be refunded Rs. 31691 within 7 days. By evening, he was told Sam-sung that big bazaar has cheated nor replaceable. The complainant registered his online complainant with state consumer helpline through web-portal “www.consumeradvice.in”. State Consumer Helpline, Haryana raised the issue with Mr. Saurabh, man-ager of future group he promised to resolve the matter within 24-28 hours. His matter was resolve on 4th June 2014. Money was refunded to him.

9. Defective Washing Machine

Mrs. Sushma from Rohtak purchased IFB- front loaded fully automatic washing machine in 2010. Machine started creating noise problems. Some parts of machine were changed. In 2012, machine again started showing problems in motor and pump. Again parts were changed by the local service center. In 2013 machine again started showing problems. No engineer came to check machine. More so customer’s number was added to block list and agency stopped attending his calls. There was sparking and noise problem in the machine. She filed complaint with the State Consumer Helpline Haryana Customer was advised to lodge written complaint to The Area Sales Officer. State Consumer Helpline also forwarded his

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complaint to the area sales officer. Very next day the company sent the engineer to his place and all the faults in the machine were removed.

10. Ration Card

Mr. Sethpal Rawal, an ex-serviceman from Panipat, had applied for Ration Card, but concerned authority did not approve his Ration Card. His Ration Card was pending for 7 years. He had provided all the proof which proved him to be resident of Panipat and eligible for ration card. He contacted State Consumer Helpline, Haryana through toll-free number. State Consumer Helpline, Haryana talked to AFSO, Panipat. Ration Card has been issued to him on 24th March, 2014 by Mr. Sanjeet Rana.

SECTION III

CONSUMER IN THE NEWS

NCDRC admits class action against Maggi / Nestle. The apex consumer court on Monday issued notice to Nestle India Limited on a Rs 640-crore suit against it by the Centre for alleged unfair trade practices and other charges pertaining to Maggi noodles and directed the Government to test the samples afresh at accredited labs. A bench of National Consumer Disputes Redressal Commission headed by Justice V K Jain admitted the Centre’s plea which also accused the company of false labelling and giving misleading advertisements. Taking note of Bombay High Court’s August 13 judgement quashing the orders of the Indian food regulators banning the nine variants of instant noodles in the country, the bench directed the Centre to test samples afresh by “accredited labs”. It posted the matter for next hearing for September 30. In its petition, the Centre has sought a direction to the company to deposit Rs 284.55 crore in the Consumer Welfare Fund for defective and hazardous goods sold and unfair trade practice. “This commission be pleased to direct the opponent company (Nestle India Limited) to deposit in the Consumer Welfare Fund Rs 355.40 crore as punitive damages,” the Centre said in its complaint before the commission. The Centre has also sought an interest of 18 per cent per annum on the amount claimed by it in the complaint till the date of actual payment of the total amount. In its petition, Department of Consumer Affairs has said that Nestle India has “indulged in unfair trade practices by false labelling of Maggi Noodles in as much as it states ‘No added MSG’ prominently on the packet, despite presence of MSG.” The complaint has also alleged that the company sold “defective” goods to the public by selling Maggi noodles with the presence of Lead and MSG and indulged

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in unfair trade practices by offering for sale Maggi Oats Masala Noodles with Tastemaker without risk assessment and product approval. It also sought a direction to the company to recall all the “defective” and “hazardous goods” with respect to Maggi noodles with Tastemaker in all its variants and Maggi Oats Masala Noodles with Tastemaker and also sought a direction to it for issuance of corrective advertisement to neutralize the effect of the misleading advertisements.

Delhi government rolls out amnesty scheme for power consumers

The Delhi government has rolled out a one-time amnesty scheme for power consumers. Approved by the Delhi Electricity Regulatory Commission (DERC), the city’s power regulator, the scheme is for those accused of stealing power, tampering with meters or having illegal connections. Under the scheme, all criminal/civil proceedings will be withdrawn against those who voluntarily disclose that they had tampered with meters. For this, the power distribution companies, or discoms, have been told to tie up with area legislators and organise special camps.An estimated 1.4-lakh consumers are expected to benefit from the scheme. Following are the benefits under the scheme for different categories of resident. Indian Railways Starts Online Survey on Consumer Preferences

With a view to improving passenger amenities and services, the Railways Ministry has started

an online survey on consumers' preference of bedrolls which will cover aspects from

cleanliness and hygienic conditions to their colour and design choice. The ministry has

uploaded a detailed questionnaire on its website on bedrolls such as bed sheets, towels,

pillows and blankets used during travel on trains."The proforma can be filled up online by

August 17. The questions asked in this survey include all aspects pertaining to bedrolls like

cleanliness and hygienic conditions, colour preference, size preference, design preference,

fabric preference, possible charges etc. The Indian Railways have signed an MoU with

National Institute of Fashion Technology (NIFT) to work on quality and design of bedrolls and

related issues. The survey has been designed in consultation with NIFT. The data collected

through the survey will act as useful input in this exercise. Consumers have been requested to

spare some time and fill in the questionnaire. It has been assured that the information so

collected could be used only for research purpose and would remain private and confidential.

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E-WASTE MANAGEMENT- Companies flout norms and regulators look away

A recent report from environmental research group Toxics Link exposes how multinationals

are flagrantly violating the MoEF-notified rules on e-waste, even as the authorities

empowered to enforce implementation remain passive. National and multinational electronic

and electrical companies in India are violating e-waste management norms while regulatory

authorities are failing to take action against them, says a report published on 24 June 2014

by Toxics Link, an environmental research and advocacy group based in New Delhi.

Currently, India produces a whopping 2.7 million tons of e-waste every year but there are a

handful of 42 e-waste collection units and 55 recycling units registered in the entire country,

says the report. A chunk of the e-waste generated is managed by the informal sector, which

has been operating illegally, putting humans and environment at great risk. It was in light of

the illegal operations and associated risks that the Ministry of Environment and Forests,

Government of India, notified the E-waste (Management and Handling) Rules in 2011 and

enforced these a year later in May 2012. A year’s time between notification and enforcement

of the rules was meant for companies and regulators to implement the rules and set up an

infrastructure for e-waste management.

Onion prices may rise due to supply crunch

Onion prices may go up further in coming days with traders expecting a decline in supply. On Thursday, the retail price of onions ranged between Rs 40 and Rs 70 per kg, prompting the government to monitor the availability and price of onions in the wholesale market. The food and civil supplies department has also started a drive to check hoarding and ensure onions are sold for Rs 30 per kg across fair price shops.

Delhi Government is selling onions at Rs 30 per kg across fair price shops and through mobile vans but consumers are finding it difficult to source cheaper onions.

Online LPG connections on the way

Very soon, customers will be able to order a new cooking gas connection online. State-run fuel retailers are joining the e-tail bandwagon with a web-based system for selling new LPG connections and cooking hobs (stoves) as part of the government’s ‘Digital India dream.

The retailers are also set to launch an easy-to-remember four-digit emergency response number for attending to complaints of leakage, instead of the 10-digit number applicable to

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many cities at present. The new number will be the same all over the country, just like ‘100’ for police.

The new system will be available on the websites of each oil company and the government’s LPG portal, Pahal. This will allow prospective consumer online filling of the application form for a new connection. The system will then automatically detect a dealer best suited for the consumer and email or massage a customer ID number within 48 hours of applying. After retting this number, the applicant can make the requisite payment is made and the verification completed, the dealer will deliver the regulator, cylinder and rubber pipe to the consumer. The entire process from application to delivery is envisaged to be completed within 6-7 days.For consumers who do not have a stove at the time of getting a connection, the system will also offer the option to buy one online.

In fresh test, Maha FDA excess lead in Maggi

The Maharashtra Food and Drug Administration (FDA) has found lead contamination in fresh batches of Nestle India's Maggi noodles tested over the last two months. Out of 46 samples randomly collected from across the state, four showed excess lead content. This lead content, expressed in 'parts per million' (or ppm) was in the range of 2.92 to 3.33. The permissible limit is 2.5 PPM.The 46 samples had been collected in June at the instructions of the Food Safety Standard Association of India (FSSAI) that wanted FDAs of all states to conduct elaborate tests to ascertain the presence of lead. The new findings come a week after the Bombay high court struck down the nationwide ban on Nestle India's product. A senior FDA official said that they will share the findings with the FSSAI before deciding on the next step of action. The four contaiminated samples had been taken from Kolhapur whereas samples from Mumbai, Pune, Sangli, Kolhapur, Aurangabad and Thane conformed to quality norms.

Barefoot Banking

RBI push to stripped down ‘payments’ banks will foster financial inclusion

Reserve Bank of India has done well to introduce more competition among banks by authorizing, in principle, a new kind of bank. Eleven approvals were announced for payments banks, a stripped down version of full service bank which is designed to reach people outside the span of formal banking services. It is an experiment well worth the effort in a country where more than 60% of people earn less than $2 a day. In this environment costs matter and a full-service bank’s structure has proved unwieldy. RBI should be complemented for this step by making good its promise to authorize small finance banks.

Banks to shut on 2nd, 4th Saturdays

Bringing cheer to lakhs of bank employees, the government has accepted the long-pending demand of workers to declare second and fourth Saturdays holidays, with effect from

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September 1. At present, all PSU and private sector banks work half-day on Saturday. “This is a welcome move. This will be a big relief to employees and I hope that this will improve the productivity,”

SECTION IV

CONSUMER COMPLAINTS DATA OF JULY 2015

Source: National Consumer Helpline

State Wise Calls

Geographical Distribution of Calls for July 2015

S.No. State Count %Age 1 DELHI 2781 19.73

2 UTTAR PRADESH 1849 13.12

3 MAHARASHTRA 1805 12.80

4 HARYANA 927 6.58

5 WEST BENGAL 927 6.58

6 RAJASTHAN 805 5.71

7 KARNATAKA 742 5.26

8 MADHYA PRADESH 666 4.72

9 GUJARAT 657 4.66

10 BIHAR 518 3.67

11 PUNJAB 356 2.53

12 TAMILNADU 338 2.40

13 ANDHRA PRADESH 303 2.15

14 JHARKHAND 217 1.54

15 CHHATTISGARH 181 1.28

16 UTTRAKHAND 179 1.27

17 ODISHA 163 1.16

18 ASSAM 121 0.86

19 KERALA 118 0.84

20 TELANGANA 103 0.73

21 JAMMU & KASHMIR 93 0.66

22 HIMACHAL PRADESH 83 0.59

23 CHANDIGARH 49 0.35

24 GOA 37 0.26

25 TRIPURA 15 0.11

26 PUDUCHERRY 10 0.07

27 MEGHALAYA 9 0.06

28 DADRA & NAGAR HAVELI 9 0.06

29 DAMAN & DIU 7 0.05

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30 ARUNACHAL PRADESH 5 0.04

31 SIKKIM 4 0.03

32 ANDAMAN NICOBAR 3 0.02

33 NAGALAND 3 0.02

34 MIZORAM 3 0.02

35 MANIPUR 2 0.01

36 LAKSHDWEEP 1 0.01

37 Not Identified/ Abroad 8 0.06

Grand Total 14097 100.00

Sector- wise Calls

Sectorswise for the month of July 2015 S.No. Sectors July 2015 %

1 Products 3077 21.83

2 Telecom 2592 18.39

3 E- Commerce 2290 16.24

4 Banking 693 4.92

5 DTH/Cable 391 2.77

6 Real Estate 384 2.72

7 Automobiles 325 2.31

8 Travel & Tours 311 2.21

9 LPG/PNG 310 2.20

10 Insurance 305 2.16

11 Education 240 1.70

12 NBFC`s 222 1.57

13 Postal 180 1.28

14 Electricity 177 1.26

15 Courier /Cargo 167 1.18

16 Placement Services 167 1.18

17 Weights & Measures 140 0.99

18 Food 134 0.95

19 Medical Negligence 106 0.75

20 Extended Care Services 104 0.74

21 Railways 100 0.71

22 Legal 95 0.67

23 Airlines 90 0.64

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24 Packers & Movers 88 0.62

25 Public Distribution System 70 0.50

26 VAT 57 0.40

27 Employees Provident Fund 39 0.28

28 Drugs & Cosmetics 29 0.21

29 RTI 29 0.21

30 Repairs Services 27 0.19

31 Cab Services 21 0.15

32 Publication 20 0.14

33 Medical Products 18 0.13

34 Beauty & Health Care Services 14 0.10

35 Public transport 14 0.10

36 IT Services 11 0.08

37 Petroleum 11 0.08

38 Referring Services 9 0.06

39 Share & Brokerag 9 0.06

41 UIDAI Authority 9 0.06

42 Water 8 0.06

43 Misleading ads 6 0.04

44 PAN CARDS 6 0.04

45 Standards 4 0.03

46 PASSPORT 4 0.03

47 Service Tax 4 0.03

48 Mediation Centre 3 0.02

49 Mutual Fund 3 0.02

51 Bar Council 2 0.01

52 Commodity 1 0.01

53 Event Services 1 0.01

54 Pension Scheme 1 0.01

55 Pharmacy Council of India 1 0.01

56 others-Service 113 0.80

57 Complaints related to Frauds 106 0.75

58 Enquiries & complaints outside the CPA ambit

759 5.38

Total 14097 100.00

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Pie Chart of calls received – Major Sector Distribution

SECTION V

ARTICLES

THE NEW INDIAN CONSUMER

When India opened its economy to the global marketplace in the early 1990s, many multinational corporations rushed in to pursue its middle-class consumers—an estimated 200 million people—only to confront low incomes, social and political conservatism, and

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resistance to change. It turned out that the Indian consumer was a tough one to figure out and win over.

Things are changing. Although attitudes remain complex, they have shifted substantially toward consumerism, particularly over the past decade. The country’s recent economic performance is a factor, of course. For three years, GDP growth has been strong and sustained, at an average annual rate of around 8%. The population’s demographic profile also plays a role: Indians constitute a fifth of the world’s citizens below age 20. So a youthful, exuberant generation, weaned on success, is joining the ranks of Indian consumers.

To examine the changes in attitude, the Gallup Organization conducted two surveys of more than 2,000 respondents gauging the habits, hopes, plans, and evolution of the Indian consumer in the decade from 1996 to 2006.

Indians are getting more materialistic.

Indians are often stereotyped as deeply spiritual people who reject materialistic values. Our research suggests that this stereotype no longer reflects reality. For instance, almost half of India’s urban population had adopted a “work hard and get rich” ethos by 1996; another 9% had done so by 2006.Indians are more motivated than ever by personal ambition and a desire for material success, and they put in the hours it takes to achieve those goals. A recent Gallup poll of more than 30 countries showed that, with an average workweek of 50 hours, India ranks among the hardest working nations globally.

Consumerism is becoming a way of life in India.

An analysis of Indians’ savings goals underscores the increase in materialism. Although long-term plans remain a high priority, life’s pleasures in the here and now have gained importance over the past decade. Indians’ desire to set money aside for electronics and durables has grown so dramatically that it has nearly caught up with their desire to save for their children’s education. Travel and entertainment have also gained ground.

Change in Consumer Behavior

Interestingly, this trend does not apply only to the young—it holds true for people aged 15 to 55. And it is not merely a large-city phenomenon; people in smaller towns espouse these values as well.

Among durable goods, high-tech luxury items are increasingly in demand. The number of Indians who own or use mobile phones, for example, has grown 1,600%—not surprising in a country that is adding more than 3 million subscribers a month. The number of people who own or use computers or laptops is up 100%, albeit from a very small base. Ownership of music systems and televisions is also on the rise. Across products, a majority of the potential customers are entering the market for the first time. This is great news for marketers, since it signifies an expanding market, which will get even bigger as current owners replace or upgrade what they have.

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Foreign is passé; Indian is paramount.

Indians long believed in the overwhelming supremacy of all things foreign. Antiquated products and technologies, well past their “sell by” date in more developed nations, were once lapped up by Indian consumers. Now, though, with Indians succeeding on the global economic stage, “Made in India” is no longer an apology. While Indians’ confidence in foreign companies has remained essentially static, their faith in domestic companies has grown. In 1996, only 34% of those surveyed expressed confidence in Indian companies; in 2006, 56% did. Indians realize that not all foreign goods are perfectly suited to their tastes and needs. They have become discerning consumers who want products that are made in India and for Indians. A look at the most respected brands in India is telling. Of the top 20 named in a survey, eight are Indian, including names like Tata, Godrej, and Bajaj. Only five of the top 20 are new foreign brands. These have succeeded because they have customized technology to meet Indian needs. “Indianizing” also has to do with keeping prices at levels that are manageable for the average Indian consumer.

(A version of this article appeared in the Harvard Business Review)

SECTION VI

CONSUMERS ACROSS THE WORLD

Consumer complaints up by 71% in Dubai

The number of complaints filed at the Department of Economic Development-Dubai (DED) during the first six months of the year rose by 71 per cent compared with the same period last year. The department registered a total of 10,468 complaints compared to 6,136 during the same period last year. This reflects the unrelenting efforts the department makes to enlighten and familiarise consumers about their rights and duties. Non-commitment to the condition of agreement topped the list with 3,663 complaints, constituting 35 per cent of the total. Complaints on cash refund stood at 1,195; defects in products accounted for 1,531; non-adherence to warranty conditions numbered 601; trade fraud, 577; replacement, 422; surcharges by sales outlets, 332 and non-adherence to advertised prices stood at 262. The remaining were other complaints.

Indian medicine, at 1/100th cost, saves Aussie's life

The 61-year-old Australian, suffering from hepatitis C, desperately needed a drug called Sivoldi to reverse the life-threatening condition.The problem was, the total treatment regime of 84 tablets would have set him back by around 100,000 Australian dollars (Rs. 48 lakh). “The same treatment with the same drug in India is 900 (AUD).” Jeffery told Australian TV

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channel ABC. Jeffery's story, now all over Australian media, has renewed the debate on whether life-saving drugs should be priced so high.

Travel agent steals BA mileage points

Blowing the lid off a first-of-its-kind fraud reported from the capital, the crime branch has arrested the owner of a Karol Bagh-based travel agency who allegedly stole mileage points worth millions of pounds collected by British Airways' fliers and booked tickets through them for his clients who had been siphoning off the Avios points - a brand for global travel reward points - has been arrested. He was redeeming the points to buy tickets from British Airways and other international airlines besides buying free stays in hotels across the globe. According to British Airways data, 20 million points worth millions of pounds were stolen. The airline, however, did not let genuine customers suffer losses, the police and airline claimed.

Whenever someone stole the points from the booking system, the genuine passenger could redeem his/her points after opening the executive club account. Even when it came to the notice of BA that a few unauthorized persons were siphoning off the Avios points by creating fake executive club accounts, they let the points be redeemed by the genuine flier.

SECTION VII

NEW INITIATIVES

The Consumer Affairs Ministry has introduced Bills in the Lok Sabha proposing amendments to the Consumers Protection Act and the Bureau of Indian Standards Act. These path-breaking amendments, among other things, seek to create a Consumer Protection Authority on the lines of the US and European countries for fast-tracking redress of grievances.

With Onion prices hitting Rs70-80 per kg in most parts of the country, the central government has floated tenders for the import of 10,000 tonnes of onions. Government of India has been keeping a close watch on the rise in prices of onions. To curb the rise in onion prices, the government had extended by one year the ban on holding of its stock beyond the prescribed limit.

SECTION VII

EVENTS

Meeting of the Sub Committee on Misleading Advertisements met twice held chaired by JS(CA)

Meeting of the Appraisal Committee on CWF funding held chaired by JS(CA)

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EC meeting of the Bureau of Indian Standards held in New Delhi under Chairman ship of Minister CA,F&PD

EC meeting of the National Test House ,held in Kolkata under Chairmanship of Secretary(CA)

Review of CONFONET held in New Delhi chaired by Secretary(CA)

TOT training by Centre of Consumer Studies, Indian Institute of Public Administration

Training of counselors of Helplines and Grahal Suvidha Kendra held by Centre of Consumer Studies, Indian Institute of Public Administration

SECTION IX

VISITS

Secretary (CA) visited Andhra Pradesh & Telangana States

Secretary (CA) visited West Bengal State and National Test House , Kolkata

SECTION X

EVENTS SCHEDULED FOR SEPTEMBER

o Meeting of North Zone States is scheduled from 4-5 September 2015 at Sri Nagar, J& K

o Inter-Ministerial Committee Meeting on Misleading Advertisements

o Orientation Training of Presidents & Members of District Fora being Held from 31Aug. to 4th Sep. 2015 by Centre of Consumer Studies, Indian Institute of Public Administration

o Meeting of Inter-Ministerial Group on Consumer Advocay at 9th September, 2015

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