BackSC dismisses Britannia plea challenging consumer dispute
Court dismisses a plea by Britannia against a penalty levied on it by a district consumer forum for a misleading promotional offer on certain biscuits
PremiumThe apex court on Friday said Britannia had misled and targeted the poorest of the poor into purchasing its biscuits. Photo: Pradeep Gaur/Mint
New Delhi: The Supreme Court on Friday dismissed a plea by Britannia India Ltd against a penalty levied on it by a district consumer forum for a misleading promotional offer on certain biscuits.
Called Jodi Banao Offer, it said “Buy 2 Packs To Get Gifts" on 50-50 biscuits, 50-50 Maska Chaska or Pepper Chakkar, whose last date mentioned in its terms and conditions was 15 March 2007.
A bench comprising justices J.S. Khehar and Rohinton Fali Nariman was critical of the food maker, saying that it got off easy with a low penalty of ₹ 15 lakh.
“I think you got off very lightly. It (the penalty) should have been much more. You’ve got away with murder, according to me," Nariman said.
On 9 September, the National Consumer Disputes Redressal Commission (NCDRC) refused to set aside the ₹ 15 lakh compensation imposed by the district forum to be paid by Britannia to State Consumer Welfare Fund in West Bengal. The state government had moved against Britannia based on a complaint of one Atanu Koomer.
Lawyer Nidhesh Gupta, representing Britannia, told the court that the company had not charged higher for the packs with the offer on it. The complaint was based on merely one consumer’s grievance.
When the court asked if the packets with the offer on them were sold even after completion of the scheme, Gupta argued that the terms and conditions of the offer addressed this specifically. He showed numbers to the court that before the offer, the company had sold more packets of biscuits than after.
The scheme was that if consumers could match one half of a picture found on the cover of 50-50 biscuits, 50-50 Maska Chaska or Pepper Chakkar with another on another pack, they would be entitled to participate in a draw of lots to win prizes like laptops, watches, mobile phones, or a trip to Paris.
The state government in its complaint had alleged Britannia tried to keep the consumer unaware of the details of the terms and conditions of the offer and the packets with the promotional offer were being sold even after the scheme closed.
The apex court on Friday said the company had misled and targeted the poorest of the poor into purchasing its biscuits.
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