The Mohali district consumer disputes redressal commission has slapped a Rs 6.72 lakh fine on a Brand Factory outlet at Cosmo Mall in Zirakpur in single-day judgements on 21 cases of unfair trade.
Though the cases were decided on August 21 the commission’s orders were received on August 28.
The commission had last week fined the clothing store around Rs 2 lakh in seven different cases for unfair trade.
Notices were issued in 21 cases in which customers had complained about the store arbitrarily charging goods and services tax (GST) and using misleading advertisements, but as no representative from the store turned up even after 30 days, a fine of Rs 32,000 was imposed in each case.
The store will pay Rs 7,000 to the complainant and Rs 25,000 to the legal-aid fund of the commission in each case. In all the 21 cases, the owner had arbitrarily charged 5% GST and used misleading advertisements.
Commission president Sanjiv Dutt Sharma said it was clear admission on the part of the Brand Factory owners that they had arbitrarily charged GST from the complainant by adopting unfair trade practices and committed deficiency in service.
Noting that it appeared that the process of law was “misused by simply filing complaints before the Commission against a particular outlet owner,” Sharma said, “It is noticed that a huge number of cases are pending against the owner on similar points of controversy.”
In a number of cases complaints were filed against the outlet owners and then “compromises reached with the owner,” who paid money to the complainant and the complaint was withdrawn, Sharma added.
“The owner continues with this malpractice regularly and minting money by overcharging innocent consumers daily and does not mind paying a small amount in lieu of these complaints to the various complainants who are probably generated for this purpose,” the commission observed.
One of the complainants, Karamveer Singh of Gillco Valley, Sector 127, had purchased a set of vests from the Brand Factory outlet in Zirakpur. The MRP of the product was Rs279, inclusive of all taxes, and there was a 60% discount on it. It is alleged that he was to pay only Rs.111.60, but instead of charging this amount, the stores added 5% GST and charged him Rs 117 for the product. Despite repeated requests by the customer, no clarification was provided by the shop owner.
It was, therefore, alleged that it was a case of misleading advertisement and unfair trade practice.
