A fine of Rs 15 lakh by been imposed on Emami Ltd by the Central Delhi District Consumer Dispute Redressal Commission on the grounds of unfair trade practices with its Fair and Handsome fairness cream.
Emami Faces Decade-Long Legal Battle Over Deceptive Fairness Cream Ads
It was in 2013 that the complaint was filed alleging that the product’s advertisement was deceptive and failed to deliver promised results.
After facing several delays, including a 2015 ruling in the complainant’s favour, which was later returned for re-evaluation by the Delhi State Consumer Commission. The latest ruling marks the conclusion of the decade-long legal battle. This comes at a time when courts and forums have intensified their scrutiny on misleading advertisements in the fast-moving consumer goods (FMCG) sector.
The company said that it was possible to get a fairer cream upon application of their cream within a period of 3 weeks. However, the complainant said that despite the regular use of the product, he did not see any results.
He also said that he was drawn to purchase the product after watching ads featuring actor Shah Rukh Khan that promised “looking fair would mean looking handsome”. However, after using the product for three weeks, as mentioned on the package, no results appeared, leading to the complaint in 2013.
As a response, the company Emami argued that the complainant could not conclusively prove adherence to the instructions and emphasised factors like diet, exercise, and lifestyle, which were not mentioned on the product label, as influencing outcomes.
Emami Fined for Misleading Advertisements and Unfair Trade Practices by Consumer Forum
The forum, led by President Inder Jeet Singh and member Rashmi Bansal, found the company’s advertisements and packaging misleading. It noted the below things:
- Incomplete instructions: The product’s label did not mention additional conditions like diet or age restrictions (16-35 years for ‘normal young men’), which were highlighted in the company’s submissions.
- Unfair trade practice: Emami used misleading claims and advertisements to promote sales without providing comprehensive usage guidelines or disclaimers.
- Consumer expectations: A reasonable consumer could believe that simply following the provided instructions would achieve the advertised results, which was not the case.
As a result, in its verdict, the consumer forum directed Emami to pay Rs 14.50 lakh in punitive damages to the Delhi State Consumer Welfare Fund, as well as Rs 50,000 as punitive damages to the complainant and Rs 10,000 towards his litigation costs.
It was also ordered to the company to refrain from deceptive advertisements, withdraw misleading packaging, and refrain from re-exhibiting them in any form.
The forum explained that punitive damages are intended to penalise the respondent for intolerable behaviour and deter similar misconduct. It emphasised that such measures aim to reform the defaulting party while protecting consumers from unfair trade practices.
