The ruling could have implications for shoppers who routinely pay extra for branded carry bags at supermarkets and retail stores. The commission made it clear that while retailers may recover the cost of unbranded bags after giving clear prior notice, they cannot charge consumers for bags that simultaneously serve as advertisements for their own business.

7-year fight over Rs 24.90 bag

The dispute dates back to April 17, 2019, when Arya visited a Reliance Smart outlet in Najafgarh, Delhi, to purchase household items. After selecting a few daily-use products, she reached the billing counter, where the cashier generated a bill of Rs 310.52. Along with the purchased goods, she was handed a cloth carry bag displaying the ‘Reliance Smart’ logo and was charged an additional Rs 24.90 for it.

Arya contended that she had never consented to buying the bag and that there was no prominent notice informing customers that a separate charge would be levied. She argued that the bag was not merely a packaging material but also an advertisement for the retailer, making the additional charge an unfair trade practice.

Reliance Smart, meanwhile, denied any deficiency in service, saying that the cloth bag was an environment-friendly alternative to plastic bags and that customers were free to bring their own bags. It claimed the purchase of the bag was entirely optional and that display boards at the billing counters informed customers accordingly.

It also argued that no law required retailers to provide free carry bags and relied on the Plastic Waste (Management & Handling) Rules to justify the practice of charging for them.

No proof of prominent display

The commission rejected Reliance Smart’s claim that notices informing customers about the optional purchase of carry bags had been displayed inside the store. It found that the retailer had produced no material to establish that such information was placed at the billing counter or at any other prominent location where customers could notice it before making payment.

“There is no inside view of the store or of the counter…so it cannot be said that it was pasted right at the billing counter or at any other prominent place of the store,” the commission observed.

The bench underlined that the carry bag prominently displayed the Reliance Smart logo. Observing that the bag promoted the retailer’s business every time a customer carried it, the commission said consumers could not be asked to pay for becoming walking advertisements for a brand. “The shopkeeper/retailer should not treat consumers as their advertisement agents. The logo of the OP on the carry bag is tantamount to promotion of their business,” it said.

The commission clarified that retailers are free to charge for unbranded carry bags, but only after clearly informing customers beforehand and obtaining their consent. Those conditions, it found, had not been met in the present case.

Refund, relief

Allowing the complaint, the commission directed Reliance Smart to refund the Rs 24.90 charged for the bag along with interest at 6 per cent per annum from April 17, 2019, until payment.

It also awarded Rs 10,000 towards compensation for mental harassment, agony and litigation expenses. The retailer has been directed to comply with the order within 45 days, failing which it will have to pay interest at 6 per cent per annum on the compensation amount as well from the date of the order until its realisation.

Significance

The ruling strengthens consumer rights by holding that retailers cannot charge customers for carry bags displaying their own brand logo, as such bags also serve as advertisements. It clarifies that only unbranded carry bags may be charged for, subject to prior notice and customer consent.

Consumers facing similar grievances may contact the consumer helpline in their respective states or dial the National Consumer Helpline at 1915 for assistance.