Emami Ltd has been fined Rs 15 lakh by the Central Delhi District Consumer Disputes Redressal Commission on grounds of unfair trade practices with its Fair & Handsome Fairness Cream.
Emami faces a decade-long legal battle over misleading fairness cream ads
A complaint was filed in 2013 that the product’s advertising was misleading and failed to deliver the promised results.
After facing several delays, including a 2015 judgment in favor of the complainant, which was later reversed revaluation By Delhi State Consumer Commission. The latest ruling marks the end of a 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 is possible to achieve a fair complexion if their cream is applied within a period of 3 weeks. However, the complainant said that despite regular use of the product, he did not get any results.
He also said that he was attracted to purchasing the product after seeing advertisements featuring actor Shah Rukh Khan, which promised that “looking fair would mean looking beautiful”. However, after using the product for three weeks as described on the package, no results were seen, leading to a complaint in 2013.
As a response, the company Emami argued that the complainant could not conclusively prove adherence to instructions and emphasized factors such as diet, exercise and lifestyle, which are not mentioned on the product label, as influencing the results. Was done.
Consumer Forum fines Emami for misleading advertisements and unfair trade practices
The forum, led by chairperson Inder Jeet Singh and member Rashmi Bansal, found the company’s advertisements and packaging misleading. The following were noted:
- Incomplete instructions: The product label did not mention additional conditions, such as dietary or age restrictions (16-35 years for ‘general young men’), which were highlighted in the company’s presentation.
- Unfair Trade Practices: Emami used misleading claims and advertisements to promote sales without providing comprehensive usage guidelines or disclaimers.
- Consumer Expectations: A reasonable consumer could believe that merely following the instructions provided would produce the advertised results, which was not the case.
As a result, the consumer forum in its judgment directed Emami to pay Rs 14.50 lakh as punitive damages to the Delhi State Consumer Welfare Fund, along with Rs 50,000 as punitive damages to the complainant and Rs 10,000 towards her litigation costs. Instructed to pay Rs.
The company was also ordered to desist from the misleading advertisements, withdraw the misleading packaging and refrain from displaying them again in any form.
The Forum explained that the purpose of punitive damages is to punish the defendant for intolerable conduct and to deter similar misconduct. It emphasized that the purpose of such measures is to improve the default side while protecting consumers from unfair trade practices.
