The District Consumer Disputes Redressal Commission in Aligarh has imposed a hefty penalty of Rs 10 lakh on a local shopkeeper and a major cigarette manufacturing company for overcharging a customer by Rs 20. The commission issued a stern warning against unfair trade practices, emphasizing that such actions constitute a hidden loot from consumers.
Case Background
The case dates back to January 2026 when Devesh Gautam, a lawyer, purchased a cigarette packet from shopkeeper Heera Lal. Although the packet had a maximum retail price (MRP) of Rs 340, the shopkeeper demanded Rs 360. When Gautam objected, the shopkeeper refused to hand over the product. To secure evidence, Gautam paid the inflated Rs 360 online to preserve the digital transaction record before approaching the consumer forum in February 2026.
Consumer's Complaint
Gautam told the Times of India, “The cigarette manufacturing company also has a responsibility to check that its products are selling at a fixed price. The seller told me that the price of the cigarettes was fixed by the company, but it was not true.”
Hearings and Defense
During the hearings, the shopkeeper failed to appear before the commission. The company attempted to distance itself from the controversy, arguing that the retailer was not an authorized vendor and, therefore, the company could not be held liable for localised black marketing. However, the bench, comprising commission chairman Hasnain Qureshi and member Purnima Singh Rajput, rejected the manufacturer's defense.
Commission's Observations
The commission observed that companies cannot escape liability for overpricing their products and termed such practices a hidden loot from consumers. It held that the retailer was selling the company's product and could be treated as its sub-agent.
Order Details
In its order, the commission stated: “We hereby direct the opposite parties (OPs) to refund the excess amount of Rs 20 to the complainant, along with interest at the rate of 18% per annum from Jan 29, 2026, until the date of actual payment. The OPs shall also pay Rs 5,000 as compensation for the inconvenience caused to the complainant and Rs 5,000 towards litigation expenses. Further, the OPs are directed to deposit Rs 10 lakh in the Consumer Welfare Fund under Section 39(1)(k) of the Consumer Protection Act, 2019. The OPs shall comply with these directions within 45 days from the date of the order. Failure to do so shall attract proceedings under Section 72 of the Consumer Protection Act, 2019, for non-compliance with the order.”
Implications
This ruling sends a strong message to retailers and manufacturers about the consequences of unfair trade practices. The commission's decision underscores the importance of consumer rights and the legal framework protecting them.
