COURT
ORDERS AGAINST UNFAIR TRADE PRACTICE
BUT MISLEADING
ADS DO NOT STOP
It often happens in the cases of misleading ads
that order is passed by the court holding such practices as unfair under
Consumer Protection Act and order for compensation is passed .Such orders are
complied to the extent that compensation is paid but since that order is passed for one case, it is
implemented in that particular case. Fine enough, none stops them to repeat the
same act; misleading ads still go on their way in the same manner. In most of
such ads by beauty clinics for slimming and weight loss,
number of judgments is passed against them day in and day out. They even do not
contest the cases and ex-parte orders are passed against them it suits them as
they do not find it necessary to contest their case and argue that they are not
indulging into unfair trade practice-neither said no nor said yes. Hence the
practice goes on. People visit their clinics, pay huge amounts after get
allured through their ads. Even if there is an order against them for not
giving such ads, they do appear because the case winner gets the order executed,
get compensation and matter ends ,rest of the part if not implemented ,non
appears for non-compliance of that part .Consumer courts do not have power to
do anything suo-moto in this regard.
Here
again is a case decided by the Hon’ble Supreme Court
on 5.4.2013 which had got much publicity when was pronounced by the Hon’ble
National Commission in the matter of Bhanwar Kanwar V/S R.K.Gupta And Others .Its
about Neeraj Clinic Pvt. Ltd. situated at Rishikesh in Uttrakhand who had given
wide publicity through newspaper Jansatta on 8.8.1993. for their clinic
claiming total cure of patients having fits
through Ayurvedic treatment by Dr R.K.Gupta.The brief facts in the case
before the Hon’ble National Commission were that the complainant’s son Prashant
had fits during high fever and hence he contacted the clinic for treatment.Dr R.K
Gupta gave medicines stating that the medicines given are the combination of hundreds
of herbs .The condition of the child did not improve,rather fits became more
frequent with longer duration and happened
even without fever also.When checked the medicines given ,it was found
that a tablet named as ‘selgin’ was not meant for children and also doctor was
passing on allopathic medicines as ayurvedic medicines. He was even not registered
for allopathic medicines with any medical council, no registration number was
provided by the treating doctor at any stage during the proceedings before the
National Commission. The medicines were sent for laboratory test to the Shri
Ram Institute for Industrial Research New Delhi for the above findings.
National commission held guilty Dr R K Gupta for unfair trade practice by
giving false and misleading ads and slapped compensation to the tune of Rs five
lacs out Of which 2.50 lacs was to be given to complainant and rest 50% to the
consumer welfare fund. Now matter comes before the Supreme Court on the point
of enhancement of compensation to the consumer. While agreeing to the order of
the National commission, Supreme Court enhanced the compensation from five lacs
to fifteen lacs with the direction to pay the entire amount to the complainant
modifying the order of depositing 50% to the consumer welfare fund.
The important thing to
be noted is that there is no order or direction to the clinic to stop
advertising in future though it is implied that giving such ads is considered
to be unfair trade practice. As stated above, in such cases advertisement still
go on and none comes ahead to take any action against them.
Yes there is a self regulatory body called ‘The Advertising Standards Council of India (ASCI) (1985) who has
adopted a Code for Self-Regulation in Advertising. It is a committed see to
honest Advertising and to fair competition in the market-place. It stands for
the protection of the legitimate interests of consumers and all concerned with
Advertising - Advertisers, Media, Advertising Agencies and others who help in
the creation or placement of advertisements.
But this
agency is having no sharp teeth to deal with such situations as stated above.
Under
such circumstances it is high time that consumer welfare organizations come
ahead to take care of this aspect and do meaningful job in this field to
meet the purpose for which a
special provision of unfair trade
practicing was made through amendment in
the consumer protection act in the year 2002 .
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