Home Insights  >Gurugram Commission Fines Zudio Solutions

Date: 03 April, 2024

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Introduction

In a significant legal development, the District Consumer Disputes Redressal Commission, Gurugram, issued a ruling on February 16, 2024, underscoring consumer rights in the retail sector. The case filed by the complainant against Zudio Solutions Private Limited addressed the contentious issue of charging customers for carry bags during shopping transactions.

FACTS OF THE CASE

The complainant, visited Zudio Solutions Private Limited on Sohna Road, Gurugram, for shopping. She bought five items amounting to Rs. 1,104. Zudio Solutions charged an additional Rs. 10 for a carry bag, which the complainant found unfair. Despite her objection, the company did not refund the amount. The complainant alleges that this action by the company violates the Consumer Protection Act, 2019, as it constitutes both a deficiency in service and an unfair trade practice. Consequently, she lodged a consumer complaint with the Gurugram District Consumer Disputes Redressal Commission against Zudio. The complainant argued that the charge for the carry bag was unjustified and violated legal standards. Despite the complainant’s objections and insistence that such an extra fee was not legally valid, Zudio continued to impose the charge. Zudio did not attend the proceedings, leading to the case being proceeded against them as ex-parte.

OBSERVATION OF THE COURT

The District Commission referred to a previous case, where the National Consumer Disputes Redressal Commission (“NCDRC”) rejected the argument made by Big Bazar that additional charges for carry bags were justified. The District Commission also dismissed claims that such charges were necessary to cover costs or were sold at no profit and no loss.

Citing Section 36(5) of the Sale of Goods Act, 1930, the District Commission emphasized that, unless otherwise agreed, expenses related to preparing goods for delivery should be covered by the seller, including packaging costs. The District Commission concluded that the practice of charging for carry bags by major retailers goes against the intent of the Consumer Protection Act and could encourage a widespread trend of exploiting consumers.

As a result, the District Commission found Zudio responsible for providing inadequate services and participating in unfair trade practices against the complainant. Zudio was instructed to reimburse the Rs. 10 charges for the carry bag to the complainant. Additionally, Zudio was directed to compensate the complainant with Rs. 15,000 for mental distress and suffering, along with Rs. 11,000 for legal expenses.

conclusion

The District Commission’s ruling against Zudio Solutions serves as a significant precedent in consumer protection. The decision highlights the importance of transparent pricing practices and the need for businesses to adhere to legal standards. The case underscores the rights of consumers and the consequences for businesses that engage in unfair practices. It also emphasizes the role of consumer forums in safeguarding consumer interests and ensuring accountability in the marketplace.

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