CONSUMER RIGHTS
Discounts should be geniune
Pushpa Girimaji

In February this year, the federal court in Australia held a jeweller guilty of misleading consumers on the price of the jewellery he had put on sale. The jeweller had advertised in his mass distribution catalogues published to coincide with Valentine’s Day and Mother’s Day, 17 pieces of jewellery at heavily discounted prices. He had done this by indicating the earlier price and the existing price. The price comparison went like this: “Was $199; Now $ 99.50”.

However, investigations by the Australian Competition and Consumer Commission had shown that the jewellery had not been sold at the price indicated prior to the sale. In other words, the jewellery, priced at $ 99.50, was not priced or sold at $ 199 at all prior to the sale. “Advertised discounts should be real and not illusory. If you make a ‘was/now’ price comparison, you must have genuinely offered the product at the ‘was’ price for a reasonable period before your sale promotion”, said the competition commission. Sounds familiar? Well, in this age of globalisation, I suppose one finds similarities even in the way retailers and manufacturers mislead customers and resort to unfair trade practices.

In the 1980s and 1990s, a large number of investigations into such discount sales by the Monopolies and Restrictive Trade Practices Commission had exposed several similar practices that were inimical to consumer interest. One common trick was to increase the price of the product prior to the sale period and then bring it down at the time of sale, thereby giving an impression that goods were being sold at a discounted price.

Similarly, retailers, it was found, would announce a mark down in prices to the extent of 50 or 60 per cent, but if you checked, such cuts would be only on a small percentage of goods in the store. On the rest, there would be no discount at all, or a discount of just 10 per cent. After observing many such practices, the MRTP Commission had issued a set of guidelines for retailers and manufacturers on what constitutes a fair practice.

This festive season, it is time to remind trade and industry of the guidelines. For example, when a retailer advertises a sale, the goods should be available at the stated price in reasonably sufficient quantities and for a reasonable duration of time, such as 12-15 days, the MRTPC had said. Goods on discounted price should be clearly labelled so and segregated from those which are not on sale. The price cut advertised or offered should be on the original price and the percentage of discount should be clearly stated in the advertisements as well as at the shop window.

The retailer announcing a sale should also clearly state the purpose of the sale. For example, if it is meant to get rid of old stock, the sale announcement should say that it is a clearance sale. On the other hand, if it is a discount for promotional purpose, or if it is an export surplus sale, or a seasonal sale, or a festival rebate, it should say so clearly so that the shopper is left in no doubt as to the purpose of the sale. In short, there should be transparency and truth in the offers, the commission had said.

So this festive season, as you go shopping, remember some of these things and ensure that you do not get misled into a bad bargain that would take away the joy of the festival. Examine carefully, critically, every festival offer before making your purchase decision. Make sure that the discount is genuine and the reduction is not on a marked up price. If what you buy turns out to be defective, you have every right to get a replacement or a refund.

Terms and conditions on the bill saying ‘No exchange and no refund’ are not legally enforceable, unless that was a sale of defective goods and you were clearly told so at the time of purchase, or your attention was drawn to the fact at the time of sale. Remember, as a consumer you have the right to defect-free goods and the right to grievance redress. You also have the right to be protected against unfair trade practices under both the Consumer Protection Act and the Monopolies and Restrictive Trade Practices Act. Making any false or misleading claim about a bargain sale, or not selling at the price advertised constitutes an unfair trade practice.

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