ITC Limited, a leading FMCG company, has been directed by a Chennai-based consumer forum to pay Rs. 1 lakh ($1,340) in compensation to a customer for a packaging error that resulted in one less biscuit than advertised in a Sunfeast Marie Light packet. The ruling was made on Wednesday, marking the end of a case that began two years ago.
The complainant, P Dillibabu from MMDA Mathur, Chennai, purchased two packets of biscuits from a Manali retail store back in December 2021 with the intention of feeding stray animals. Upon opening one of the packets, Dillibabu discovered it contained only fifteen biscuits instead of the advertised sixteen. His attempts to seek clarification from both the local store and ITC were met with unsatisfactory responses, leading him to lodge a complaint with the consumer court.
In his complaint, Dillibabu calculated that each biscuit was priced at 75 paise. Given that ITC manufactures nearly 50 lakh packets daily, he argued that the company was potentially defrauding the public of Rs. 29 lakh ($38,759) daily.
In response to these allegations, ITC argued that their product was sold based on its weight and not the number of biscuits inside. The company claimed that the net weight of each packet was 76 grams. However, upon examination by the commission, it was found that each packet weighed only 74 grams. ITC's legal representation cited the Legal Metrology Rules of 2011 which allow for a maximum permissible error of 4.5 grams for pre-packaged commodities.
The judge, however, disagreed with ITC's defense stating that this rule applied only to items considered 'volatile' in nature. On August 29, the court ruled that ITC had engaged in 'unfair trade practices' and ordered the discontinuation of sales for that specific batch of biscuits.
As part of the ruling made on Wednesday, ITC was ordered to compensate Dillibabu with Rs. 1 lakh for their packaging error. This case serves as a reminder of the significant cost implications that can arise from seemingly minor errors.
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