New Delhi: The district consumer disputes redressal commission in Delhi’s Central District has slapped a fine of Rs 15 lakh on Emami Ltd for engaging in unfair trade practices regarding its Fair and Handsome cream. The fine was imposed after a man alleged that the fairness cream advertisement of the company was deceptive and misleading.
The complainant said that he bought the cream in 2013 for Rs 79, but it didn’t make his skin fair as was assured in the advertisement. The forum passed the order on December 9.
Commission President Inder Jeet Singh and member Rashmi Bansal noted that Emami Limited’s claims about achieving fair skin within three weeks of using the cream were misleading and lacked proper evidence, thereby violating consumer rights.
The commission directed to remove all such deceptive advertisements and packaging, while imposing punitive damages of Rs 15 lakh, with Rs 14.5 lakh allocated to Delhi State Consumer Welfare Fund and Rs 50,000 to the complainant. The payment must be made within 45 days of the order.
The ruling was initially in favour of the complainant in 2015, but in 2017, it was overturned by the state commission. The case was then sent back to the district commission for a fresh review, with instructions to carefully evaluate all the evidence.
How did the case start
It all started when Nikhil Jain filed a complaint against Emami Limited, accusing it of deceptive marketing for its Fair and Handsome cream. Jain said he bought the cream for Rs 79 and followed usage instructions. But, the cream failed to deliver its advertised benefits of fairness and other improvements, rendering it defective. He urged remedial advertising for a year, punitive damages of Rs 19.9 lakh, and Rs 10,000 for litigation expenses.
Emami Limited challenged all the claims, and maintained that its product had undergone scientific testing and had adhered to regulatory requirements. The company pointed out that the complaint was baseless and with not adequate evidence. It also said that the complainant failed to provide adequate purchase documentation and expert assessment of the product’s efficacy. It added that its cream had undergone various assessments and was particularly formulated for UV protection and skin enhancement for persons aged 16-35 years.
The commission turned down all these arguments, and said that the Fair and Handsome cream’s packaging and advertisements were misleading as it suggested guaranteed fairness within three weeks without specifying necessary conditions. This was classified as an unfair trade practice, it said.
