Free gifts are meant to be given

Pushpa Girimaji

Last month, I bought a washing machine at a large store selling household electric and electronic goods. The store had put up a board outside saying that on every purchase, the customer would get a scratch card with a guaranteed gift and the really lucky ones may get a car or a house! So I asked for the scratch card and got one, which, however, only said ‘Better luck next time’. The store argued that it was a game of chance and I, obviously, did not have any luck! I feel cheated because I bought from this store only on seeing the ‘guaranteed gift’ offer. Do I have a right to take action against the store? What kind of evidence do I need?

Of course, you have a right to haul up the store for unfair trade practice and for failing to give the promised gift.

Under the Consumer Protection Act, the offering of gifts, prizes or other items with the intention of not providing them or creating an impression that something is being given free or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole, constitutes an unfair trade practice. Similarly, withholding from the participants of such a scheme, the information about its final results constitutes unfair trade practice.

A consumer, who is a victim of such an unfair trade practice, can seek redress before the consumer courts constituted under the Consumer Protection Act.

The consumer courts, in such cases, can pass orders for discontinuation of such practices. They can also award compensation for any loss or injury caused as a result of such unfair trade practice, besides costs of litigation. They can also award punitive damages. And in recent years, the consumer courts have taken a serious view of such unfair practices.

In your case, the retailer was actually luring consumers with offers of a ‘guaranteed gift’ with every scratch card, without any intention of giving so. You must file a complaint against him; it’s possible he has cheated many more customers in this fashion and he should not only be stopped from continuing with such practice, but also made to pay damages. So, go ahead and file the complaint.

As for evidence, take a picture of the board outside the shop promising guaranteed gifts on every purchase (or through every scratch card). If the shop has made similar claims through advertisements, use that too. I would also suggest that you do a Google search for complaints against this retailer. It is possible that other consumers, who have been similarly cheated, have posted their comments. That will also help you. If you have the scratch card, use that too as a part of the evidence. And then, of course, you need to provide the authenticated copy of the cash receipt. If you have written any letter to the store, protesting against this unfair trade practice, even that would be very helpful. Do take up this case because it violates your right as a consumer.

If consumer courts have decided on a similar case, can you please quote it for me?

In Bonn Nutrients Pvt Ltd Vs Jagpal Singh Dara IV (2005) CPJ 108 (NC), the complaint of the consumer was that the bread manufacturer had advertised a ‘scratch and win coupon’ in each packet of bread and showed pictures of a number of gifts, implying that those who bought the bread would get one of the gifts indicated in the advertisement. However, every time the complainant bought the bread and scratched the coupon provided, it said ‘Please try again’.

Holding this as an unfair trade practice, the District Forum, through its order delivered on January 4, 2001, awarded a compensation of Rs 5,000 to the consumer. On an appeal from the consumer for enhancement of the compensation award, the Punjab State Consumer Disputes Redressal Commission enhanced the compensation to Rs 50,000 in July 2002. The manufacturer, in turn, filed a revision petition against it, arguing that he had not guaranteed a prize through every scratch card. After examining the case and upholding the verdict of the lower consumer court, the National Consumer Disputes Redressal Commission observed: “In our view, in case of unfair trade practice like the present one, the compensation to be awarded has to be exemplary. Compensation as enhanced by the State Commission, thus, is by no stretch of imagination is excessive”. This case should certainly help you.