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E-commerce portal fined for misleading ads

Photo: Facebook/@homeshop18

Photo: Facebook/@homeshop18  

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Not including terms and conditions in ads amounts to unfair trade practice, observes NCDRC

The National Consumer Disputes Redressal Commission has directed e-commerce portal Home Shop 18 to compensate a complainant by paying ₹16,000 over misleading advertisements of “free gift vouchers”.

Stating that the portal was guilty of unfair trade practice, the consumer panel said, “Inducing the consumer to purchase a particular article...without specifically mentioning the terms and conditions of the gift coupon in the main advertisement can be construed as not providing them as offered.”

The complainant, Mridul Jain, alleged that on seeing an “offer of gift vouchers worth ₹1,000,” he purchased a phablet worth ₹6,400. However, the vouchers received had “terms and conditions” he was not aware of previously. The portal contended that the vouchers were “voluntarily” provided and that the terms and conditions were on the website.

However, the panel said, “The advertisement on the website does not specifically mention about the ‘conditions to follow’…therefore the case falls within the ambit of relevant rules, which specifies the offering of gifts, price of other items with the notification of not providing them as offered, when it is fully or partly covered by the amount charged in the transaction as a whole.”

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