Carry bags: Is extra charging legal?
Last year, we witnessed a number of consumer court orders directing stores to provide free carry bags to consumers. For a brand, shopping bags aren't just an essential service. The customised bags also serves as marketing tool and publicize the brand aesthetics.
To understand the matter, let's go through some of these orders against popular brands:
Chandigarh Consumer Commission ordered Lifestyle to refund to the complainant Rs.5/- wrongly charged for the paper carry bag; to pay Rs.1,500/- as compensation for mental and physical harassment; to pay Rs.1,500/- as litigation expenses; and to deposit Rs.10,000/- in the "Consumer Legal Aid Account". The forum also directed to provide free carry bags to all customers.
Following the previous order, Consumer Commission ordered Westside to refund to the complainant Rs.10/- wrongly charged for the paper carry bag and give Rs 13,000/- in total.
Consumer Commission ordered Bata to refund to the complainant Rs.3/- charged for the carry bag and to pay total Rs.9,000/- as compensation.
If you look closely, there is a common thread in all these court orders i.e.
"You can't charge for carry bags if you are marketting your brand through it."
The act of charging for a paper bag and putting Company's Logo on it, is Unfair trade practice. Charging for paper carry bags is totally against consumerism.
How this practice started?
Ironically, this practice started with a legislation- "Plastic Waste (Management and Handling) Rules, 2011". The Rules states that “No carry bags shall be made available free of cost by retailers to consumers”. The same rule was again reiterated in new Plastic Waste Rules, 2016. As per the Rules, "carry bags" means bags made from any plastic or compostable plastic material.
This Rule was misinterpreted by companies and retail stores and practice of charging extra for Carry bags started even for paper or cloth bags.
At present, the Rule of charging for plastic carry bags has also been omitted by an amendment in year 2018.
Why it requires your attention?
Though the legal experts are divided on the reasoning, yet these orders cannot be avoided.
Consumer court's decision is legally valid across India. Your customer might cite these order and have the bag charges waived.
In all these matters, the cost imposed on the company/store is way over the cost of a carry bag. Recently, the retail chain giant Big Bazaar was slapped with cost of Rs 5 Lakhs over a carry bag.
You have to realise that each and every customer can file these cases against you. Even if you successfully defend your case, the cost of litigation, hassle and negative publicity is not good for business.
Good practices to avoid any liability
Court considers charging for carry bags as deficiency in service and an unfair trade practice, a tag no brand wants. Due to ban on plastic use and increasing sustainability concerns, retailers are forced to switch to paper/cloth bags which are costlier.To avoid any legal issues, the companies can try to absorb the cost of carry bags in the marketing budget.
If you want to charge for carry bags:
1) Do not put your logo, brand name, picture or quote associated with your brand on the carry bag.
2) Display a notice in a prominent place that customers will be charged for carry bags.
3) Allow customers to carry their own bag inside the store.
If you are still using plastic carry bags:
1) Do not provide Single-use plastic bags or bags not in accordance with Plastic Waste Rules, 2016. Read more about Plastic bags here.
2) Check your plastic bag supplier's registration with Pollution Control Board.
3) It is no longer mandatory to charge extra for plastic carry bags.
Disclaimer: This article is solely for information and does not constitute legal advice.
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