Kerala consumer court orders myG Future to pay over ₹15,000 for false discount claim on biriyani pot

The District Consumer Disputes Redressal Commission (DCDRC) at Ernakulam recently directed the digital retail store 'myG Future' to pay over ₹15,000 to a senior citizen for a misleading advertisement that falsely claimed to give a 64% discount on a biriyani pot [Manuel Vincent v My G Future]

DCDRC President DB Binu and members V Ramachandran and Sreevidhia TN held that the pricing displayed in the advertisement amounted to 'misleading advertisement' as defined under Section 2(28) of the Consumer Protection Act, 2019.

"This case highlights the unfortunate reality faced by many unsuspecting consumers, especially senior citizens like the complainant, who place their trust in advertised offers, only to be misled and exploited," the Commission said in the order passed on June 27.

The complainant, Manuel Vincent, aged 62 and a resident of Malippuram in Kochi, had purchased a 10-litre biryani pot from myG Future's newly inaugurated store on February 11, 2023.

The decision was based on an advertisement in Malayala Manorama, which claimed a 64% discount, stating the original price of the pot was ₹3,299 while the store was offering it at ₹1,199.

However, the tax invoice issued on the same day revealed that the actual original price of the product was only ₹1,890.

The complainant alleged that the discount was artificially inflated to lure customers.

Vincent approached the store to clarify the discrepancy but was allegedly met with rude behavior. A legal notice demanding a refund and public apology was sent on February 25, 2023, but there was no response from the retail chain. The complainant thereafter approached the consumer forum seeking compensation.

Since myG Future failed to appear or respond despite being served with a legal notice, the matter proceeded ex-parte.

The Commission accepted Vincent's case and documents as unchallenged and observed that the act of inflating the product's price in the advertisement constituted unfair trade practice under Section 2(47) and deficiency in service under Section 2(11) of the Act.

It also noted that advertising an incorrect discount amount and misleading the consumer amounts to 'misleading advertisement' under Section 2(28) of the Act.

"The complainant, acting in good faith, responded to what appeared to be a genuine promotional offer, only to discover that the discount was illusory and the pricing inflated. His experience from being enticed by a deceptive advertisement to being dismissed rudely by the store and ignored even after a legal notice reflects not just a legal wrong but a moral failure on the part of the Opposite Party. Such disregard for consumer dignity and rights undermines public confidence and calls for firm redressal to restore justice and fairness in the marketplace," the forum observed.

Accordingly, the Commission directed myG Future to refund ₹519, the excess amount collected from the complainant based on the inflated discount and to pay ₹10,000 as compensation for mental agony and ₹5,000 towards legal costs.

Further, the company was restrained from issuing such misleading advertisements in the future. It was granted 45 days to comply with the order, failing which the forum stated that an interest at 9% per annum would be imposed from the date of filing of the complaint until payment of the amount.

Advocate Denizen Komath appeared for the complainant.

[Read Order]