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Home News Corporate Law

Consumer forum instructs Emami’s Fair & Handsome to retract misleading advertisements and compensate ₹15 lakh in damages.

admin by admin
December 10, 2024
in Corporate Law
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Consumer forum instructs Emami’s Fair & Handsome to retract misleading advertisements and compensate ₹15 lakh in damages.
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The District Consumer Disputes Redressal Commission in Delhi’s Central District has once again ruled against Emami in a case related to its “Fair and Handsome” fairness cream, finding the company guilty of misleading advertisements and unfair trade practices.
In the ruling, the Commission, led by President Inder Jeet Singh and member Rashmi Bansal, stated that Emami’s claim that the cream could provide fairer skin in just three weeks was not only deceptive but also unsupported by any scientific evidence, thus violating the rights of consumers.
The Commission criticized Emami’s approach, stating that the instructions on the product’s packaging were incomplete and misleading. The company had presented a product that created the illusion of quick results while failing to mention the necessary conditions for achieving the promised fairness. The Commission argued that such misleading claims were aimed at promoting sales by exploiting consumers’ trust.
As a result, the Commission ordered the company to discontinue all misleading advertisements, withdraw the product packaging containing false claims, and cease using celebrity endorsements in such promotions. Emami was also directed to pay ₹15 lakh in damages. Of this amount, ₹14.5 lakh is to be deposited into the Delhi State Consumer Welfare Fund, and ₹50,000 is to be paid to the complainant, Nikhil Jain.
This case had a long history, having first been ruled in favour of the complainant in 2015 when the District Commission found Emami’s claims to be false. However, the State Commission overturned the decision in 2017, remanding the case for reconsideration. In the final ruling, the Commission emphasized that the damages would serve as a deterrent to prevent other companies from engaging in similar deceptive practices.
The complainant, Nikhil Jain, had purchased the fairness cream for ₹79 and followed the instructions on the packaging but failed to achieve the promised results. He sought not only corrective advertisements for the product but also punitive damages of ₹19.9 lakh and litigation costs of ₹10,000.
In its defence, Emami had claimed that the product was scientifically tested and met all regulatory standards, asserting that it helped protect against UV rays and improve skin quality for users between 16 and 35 years of age. However, the Commission rejected these claims, ruling that the advertisement had misled consumers about the product’s effectiveness.
The Commission also noted that such misleading advertising tactics undermine consumer trust and exploit vulnerable buyers. In its conclusion, the Commission imposed a fine to hold Emami accountable for its actions, stressing that the damages would send a strong message to the industry about the importance of truthful and transparent marketing practices.
Advocate Paras Jain represented Nikhil Jain during the proceedings.

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