nikhil jain v. emami ltd. judgment delhi consumer forum

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Emami Penalised 15 lakhs for unfair trade practices, fair and handsome cream,delhi consumer forum, nikhil,consumer

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  • 11/14/2015 Cause Title/Judgement-Entry

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    Heading1Heading2

    Complaint Case No. CC/53/2013

    1. NIKHIL JAINB-9/3, VALLABH VIHAR SOCIETY, SEC.-13 ROHINIDELHI 85 ...........Complainant(s)

    Versus1. EMAMI LTD687 ANANAD PUR EM BYPASS KOLKATA PINCODE700107 ............Opp.Party(s)

    BEFORE: HON'BLE MR. RAKESH KAPOOR PRESIDENT HON'BLE MR. VIKRAM KUMAR DABAS MEMBER HON'BLE MRS. NIPUR CHANDNA MEMBERFor the Complainant:For the Opp. Party:

    ORDERPER SH. RAKESH KAPOOR, PRESIDENT

    On8.10.2012,the complainant had purchased fair and

    handsome cream ,Worlds no. 1 fairness cream for men

    (herein after called the product) from M/s K B Fair

    Price , C-3/7, Ground Floor, Prashant Vihar New

    Delhi. The said cream is manufactured ,sold and

    distributed by the OP. It is the case of the

    complainant that he had used the product as per

    directions for use mentioned on the labeling and

    packaging of the product but it had failed to show

    any results as claimed by the OP in respect of the

    product. It is the further case of the complainant

    that the OP has been using Mr. Shahrukh Khan , a

    well-known actor as its brand ambassador for

    promotion of the product and it makes false claims

    and promises that it provides fairness in just three

    weeks. Having used the product as per the directions

    of the Op , the complainant had approached the OP and

    had brought to its notice that the product had failed

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    to give the promised benefits but the OP had refused

    to respond to the e-mail written in this regard. The

    complainant has claimed that the present complaint is

    maintainable U/s 2(f) and U/s 2 (r) of the Consumer

    Protection Act as the product is not of the quality

    and potency as claimed and the OP has adopted an

    unfair trade practice for the purpose of promoting

    the sale , use and supply of the product including

    the following:

    (i) Falsely represents that good

    have characteristics, uses or

    benefits which such good do not

    have;

    (ii) Makes a false and misleading

    representation concerning the

    usefulness of good;

    (iii) Makes a false and

    misleading representation

    concerning the need for and the

    usefulness of the product.

    (iv) Gives false and misleading

    facts about the said product.

    (v) Makes a false advertisement

    about the product.

    The complainant has alleged that the OP is guilty

    of resorting to an unfair trade practice and has

    prayed for the following reliefs.

    1. To order the OP to

    discontinue the Unfair

    trade practice as per

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    section 14 of consumer

    Protection Act, 1986 as

    the benefits of product

    claimed by the OP are

    false and further to give

    an advertisement in

    newspapers, for a

    continuous period of one

    year, across the country

    in English and Hindi and

    vernacular languages

    stating that such products

    do not provide any

    fairness to the men.

    2. Since the OP has played

    with the emotions of the

    complainant as he

    purchased the product of

    OP, in order to get the

    benefits, mentioned and

    claimed by the OP on the

    packaging and labeling of

    its product, which turned

    out to be false claims as

    per the above contentions

    made.

    Therefore, we hereby

    request the Honble Judge

    of District Consumers

    Dispute Redressal Forum to

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    award compensation of

    Rupees Nineteen Lacs

    ninety thousand, as

    punitive damages, in favor

    of the complainant plus

    the litigation charges and

    other transportation

    expenses of Rupees ten

    thousand.

    The op has contested the complaint and has

    filed a written statement. It has claimed that

    the complaint is absolutely frivolous and is not

    maintainable . It has disputed that the

    complainant is a consumer within the meaning of

    Consumer protection Act 1986. It has denied that

    the complainant has used the cream for a period

    of three weeks as per directions and has claimed

    that the product fair and handsome cream is

    manufactured by it under a license from the

    competent authority and the same is backed by

    scientific research, evaluation and quality

    control. Paras 6 to 11 of the reply are relevant

    for the purpose of disposal of this complaint and

    are reproduced as under:-

    6.It is stated that the complaint has been motivatedly

    made to malign the goodwill and reputation of the Op

    who is a renowned manufacturer of consumer goods

    which are highly popular in domestic and international

    market.

    It is stated that each of the product manufactured by

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    the Op including the Fair and Handsome cream is

    manufactured under strict quality control and is the

    product of extensive scientific research.

    7. Fair & Handsome has been developed by USA based

    Dr.Chanda Zaveri, renowned skin expert and protg

    of two times Nobel Prize winner, in collaboration with

    India Dr. Chanda Zaveri is in possession of various

    United States Patent for invention of Peptide complex

    in respect of dermatology healing, treatment of

    Alopecia, hair ailments and various cosmetic products

    relating to hair and skin care treatment and

    beautification and has also extensive know how and

    technical knowledge as regard to manufacture of

    various cosmetics and herbal products.

    This fact is also declared on the label of the product.

    One of the ingredients of Fair & Handsome is Lumino

    Peptide. Peptide is a molecule formed by joining two or

    more amino acids. Peptides (proteins) are present in

    every living cell and posses a variety of biochemical

    activities.

    They appear as enzymes,hormones,antibiotics,

    receptors, etc.

    Peptide technology with specific signals for Collagen

    synthesis which retard skin aging and wrinkles. A

    powerful Peptide sequence will take care of proper

    Collagen synthesis by proliferation of fibroblast which

    accelerates Collagen synthesis and also increase the

    metabolic activity of the skin , thus imparting radiance

    to skin and depresses melanin formation thus not only

    giving freedom from those depressing wrinkles but also

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    make look fairer.

    The Op party had also got a study titled "Evaluation of

    Skin Cream Formulations to confer Fairness on

    Healthy Male subjects" conducted at The KET's

    Scientific Research Centre, Cosmetology Division,

    Mumbai in respect of its product. The synopsis of the

    findings is enclosed as Annexure "A-1"which clearly

    suggests that the complaint of the complainant is

    frivolous and without any basis.

    claim justification note in respect of Fair & Handsome

    is enclosed as Annexure A-2.

    8. It is specifically stated that no remarks made

    regarding the product Fair and Handsome cream by

    the Ops in any manner whatsoever are misleading as

    alleged by the complainant so as to give the same a

    colour of unfair trade practice.

    The Fair and Handsome cream is basically a personal

    care product to keep the skin healthy, the skin being

    one of the largest organ of the human body and the

    facial and neck skin being largely exposed to the

    vagaries of nature, sunlight (ultra violet Rays), dust,

    wind etc. the cream provides protection and

    nourishment to the facial and neck skin.

    9. The desired result from the use of a personal care

    product in any market anywhere in the world depends

    upon a host of other adjacent factors such as proper

    usage of the product and proper nutritious diet,

    exercise, healthy habits, hygienic living conditions etc.

    The effect of the product shall vary with these variables

    including age of the user.

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    The particular product as would be evident from the

    packaging has been produced for the use of young men

    within the age group of 16-35 years for protecting their

    facial and neck skin from UV ray of the sun which

    causes darkening of the skin, soften, nourish the skin

    and remove the blemishes. The product is highly

    popular in the market since a large number of users

    have been benefited by its use. A few of the mail of

    appreciation received by the Ops in regard to the usage

    of the cream are annexed hereto and marked as

    Annexure4 collectively.

    10. It is reiterated by the Ops that regular proper use

    skin health interalia by protecting and nourishing the

    skin. There is no evidence whatsoever before this

    Hon'ble Forum that the complainant used the cream

    regularly and that his skin condition did not improve at

    It is indeed absurd for a lay person to make such claim

    without appropriate medical opinion from a

    dermatologist.

    The complaint is frivolous and riddled with anomalies.

    There is no averment regarding the previous condition

    of the skin of the complainant, his life style and health

    habits, his general physical condition. The allegation of

    the complainant as made in page 5 paragraph (a) of the

    complaint is not supported by an iota of evidence.

    11. It is reiterated that the allegation of the complainant

    as aforesaid do not establish any defect in goods at all

    nor it indicates any unfair trade practice by the Ops.

    The cream is manufactured specifically for use in

    tropical country interalia providing protection from UV

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    Rays of the sun which causes darkening of the skin. The

    cream also provides nourishment which makes the skin

    soft and supple generally making it fairer, smoother,

    softer, healthier adding a healthy glow. The degree of

    effect will obviously vary from person to person

    depending upon the other variable factors. As such the

    advertisement is neither false nor misleading.

    The website information is backed by scientific

    research and product sampling.

    The OP has further claimed that there is no basis

    of the compensation claimed in this case. It has

    claimed that the complaint is a mala-fide exercise to

    malign the good will and / or the image of the Ops

    with an ulterior motive. It has prayed that the

    complaint be dismissed with cost.

    We have heard arguments advanced at the bar and

    have perused the record.

    It may be pointed that an objection was raised

    by the OP to the pecuniary jurisdiction of this forum

    to entertain and try the present complaint. It was

    claimed that if the cost of the product was added to

    the amount claimed , the aggregate value of the

    relief would go beyond the pecuniary jurisdiction. A

    perusal of the complaint , however, shows that the

    complainant has not sought the refund of the value of

    the product and had kept the value of the relief at

    Rs 20,00,000/-(R s twenty Lakhs only ). In (1997) 5

    CTJ 131 (CP) (NCDRC) Quality foils India Pvt. Ltd.

    V/s Bank of Madura Ltd & Ors , the National

    Commission had held that the criteria for determining

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    value of jurisdiction is to the quantum of reliefs

    put together i.e. the aggregate values of the goods

    and compensation or aggregate value of services and

    compensation and on the aggregate value of goods and

    services and compensation as the case may be by the

    aggrieved consumer. In the present case, the

    aggregate value of the reliefs sought by the

    complainant does not exceed the pecuniary

    jurisdiction of this forum. Even otherwise, a

    statement was made on 24.9.2015 by the Authorized

    representative of the complainant that in order to

    obviate any technical objection with respect to the

    pecuniary jurisdiction of this forum, the relief

    sought be limited to Rs. 20 Lacks only. In view of

    the judgment cited above and in view of the statement

    made by the authorized Representative of the

    complainant, we have no hesitation to hold that the

    complaint is within the pecuniary jurisdiction of

    On behalf of OP , it has been contended that the

    complaint has been filed primarily on the ground that

    the product is defective and the OP is guilty of an

    unfair trade practice on the basis of false

    representation. It is contended that no expert

    report has been filed by the complainant and,

    therefore , the provisions of Section 13 (1) (c) have

    not been complied with. In the written arguments

    filed on record , it is claimed that the market is

    flooded with consumable goods and the consumer has a

    very wide choice among various brands. It is stated

    that the consumer chooses from amongst the varied

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    products and if one brand does not satisfy him , he

    shifts to another brand available in the market. It

    is contended that if the complainant was not

    satisfied with the product of the Op, it cannot be

    said that the product was defective and / or the

    advertisement is misleading.

    The op has further claimed that its product is

    manufactured under a drug licence with stringent

    quality control. The efficacy of the product is

    tested and documented from time to time and at least

    8 such test reports have been relied upon and placed

    on the record of this case. The test reports are :-

    i) Kelkar Education Trust

    Scientific Research Centre

    (exhibit A1).

    ii) Mascot spin control

    iii) MJ Lab Pvt. Ltd.

    iv) Association for assessment and

    accreditation (official

    recognition) of laboratory

    animal care international

    v) Bio Needs

    vi) Conclusion N.B. Two weeks

    vii) IMRB International (two weeks)

    viii) ASCI

    ix) Expert evidene Prof. Bijan

    Kumar Gupta, J.U.

    It has been further contended by the OP that there is

    no allegation that the complainant had suffered loss

    or injury because of the use of the product.it is

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    claimed that no compensation can be awarded to the

    complainant unless the aforesaid fact is established.

    It is also contended that the product has all the

    ingriedients claimed in the advertisement and gives

    the desired results as promised.

    On behalf of the complainant, however, much

    emphasis has been laid on the advertisements

    depicting Mr. Shahrukh Khan as its brand ambassador

    and with a representation that its use gives a fair

    complexion to the user. The transcription of the

    said advertisements have been placed on the record of

    this complaint which has not been disputed to by the

    OP. The transcription of the advertisements read as

    Advertisement no. 1

    Kaash mai bhi shahrukh hota

    Jina chahte ho meri zindagi

    Itna sab sahne ke baad bhi

    handsome , kaash mai bhi.

    Shahrukh:- nhi toh kya ,

    handsome koi bhi ban sakta hai,

    Fair and Handsome use karo meri

    tarah

    Par ladkiyon wali cream kabhi

    nahi

    Emami Fair and Handsome cream,

    khaas mardo ke saqt tawacha ke

    liye, iska unique five power

    fairness system de behtar

    gorapan.

    Haye handsome Haye Handsome

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    Kaha na handsome koi bhi ban

    sakta hai.

    Fair and handsome cream, use

    worlds no. 1 Fairness cream

    for men.

    Advertisement no. 2

    Bhaiya fir se meri

    saari fairness cream khatam kar

    Mard ho kar ladkiyon wali

    cream, chiiii

    Chup chup kar kaahey kyu

    ladkiyon ki cream lagaye, unki

    twacha hai komal komal aur

    tumahri rough and tough, twacha

    nhi unke jaisi yeh kyu samajh

    na aaye

    Emami Fair and Handsome

    Aam Fairness Cream mardo ki sqt

    twacha mein nhi sama patey

    Sirf Fair and Handsome mein hai

    American Double Strength

    peptide aur jadi butiyan jo

    undar tak samayen aur gora

    banaye four weeks mein

    Haye handsome Haye Handsome

    Fair and handsome cream, use

    worlds no. 1 Fairness cream

    for men.

    We have also seen the advertisements as a CD of the

    same was placed on record by the complainant. The

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    advertisements depict that by application of the

    product, the complexion of the user changes from

    dark to wheatish and from wheatish to fair. The

    transcription of the advertisements as reproduced

    above holds out that the application of the product

    will produce a fair complexion. It uses the word

    gorapan in advertisement no. 1 which means fair

    complexion. In advertisement no. 2 it gives out a

    promise that the use of the product for a period of

    four weeks will ensure fair complexion. The

    advertisements , therefore, make a representation to

    the general public that by the use of the product

    they can achieve fair complexion. This is in direct

    contrast with the defense taken by the OP wherein it

    has claimed that the use of the product improves

    the health and quality of skin by providing

    protection and nourishment to the facial and neck

    skin which are more exposed to the vagaries of

    nature, sunlight, dust , wind etc. No attempt has

    been made on behalf of the OP to show and justify the

    advertisements which hold out a promise of the skin

    getting fairer by the use of the product. The

    complainant has categorically stated that even though

    he uses the product as required, it had made no

    effect on his complexion which did not improve.

    We are , therefore, of the considered opinion that

    the advertisements published by the OP as referred to

    above make a misrepresentation to the public at large

    about the effectiveness of the product to change the

    complexion of the skin from dark to wheatish and

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    from wheatish to fair. It , therefore, amounts to an

    unfair trade practice being adopted by the OP to

    sell its product. The OP is also guilty of deficiency

    in service qua the complainant as the product sold to

    him was found to be defective. We, therefore, direct

    the OP as under:-

    1. Pay to the complainant a sum of Rs.

    10,000/- (Rs Ten Thousands Only)as

    compensation which will also include the

    cost of litigation.

    2. Deposit a sum of Rs. 15 Lacs(Rs

    Fifteen Lacs Only) as punitive damages

    with the consumer welfare fund maintained

    with the State Commission, Delhi.

    3. Withdraw the advertisements

    representing that the use of the product

    will change the complexion from dark to

    wheatish or from wheatish to fair .

    The OP shall comply with this order within a period of 30

    days from the date of this order failing which it shall be

    liable to pay interest on the entire awarded amount @ 10% per

    annum. IF the OP fails to comply with this order, the

    complainant may approach this Forum for execution of the order

    under Section 25/27 of the Consumer Protection Act.

    Copy of the order be made available to the parties as per

    rule. File be consigned to record room.

    Announced in open sitting of the Forum

    on.....................

    [HON'BLE MR. RAKESH KAPOOR]PRESIDENT

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    [HON'BLE MR. VIKRAM KUMAR DABAS]

    MEMBER

    [HON'BLE MRS. NIPUR CHANDNA]MEMBER