PUSH FOR CONSUMER RIGHTS – Sold goods can always be returned: Forum

The state consumer commission on Wednesday ruled in favour of a man who took on a clothing showroom for forcing on its customers the illegal condition that “goods once sold cannot be returned or exchanged”.

Many people were unaware of the letter issued by the department of consumer affairs in Delhi in December 22, 1999, prohibiting printing the condition that “goods once sold will not be taken back“ on receipts.
“Hopefully through such state commission orders, people who have similar issues will be aware of their rights. Such illegal practices need to be curbed,“ Lonke said. “I have spent more on fighting this complaint than the compensation awarded. But I am happy with the positive outcome.“

Lonke also cited a Pune district forum order of May 30, 2012, in which a clothing store was directed to refund Rs 240, along with Rs 1,000 compensation, to a woman who wanted to return a pair of leggings that did not fit her.
The forum had observed that printing such a non-return policy on the bill amounted to unfair trade practice.

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Since shares are “traded”, consumer fora treat this matter as a commercial dispute, which is not maintainable. In a recent judgment, the national commission has differentiated between trading in shares and purchase of shares as an investment, and ruled that an applicant for shares is a consumer.

In its order dated April 1, 2014 delivered by Justice V B Gupta for the bench, along with Suresh Chandra, the national commission differentiated between trading in shares and allotment of shares. An applicant who applies for shares would stand on a different footing from one who trades in shares for commercial purpose.

Since Apritha has applied for allotment, she would be a consumer and was entitled to approach the consumer fora.

The national commission held that deficiency on the part of the company was evident from the board resolution and the agreement. Accordingly, the revision petition was dismissed and the order of the state commission in Arpitha’s favour was confirmed. It also imposed a fine of Rs 10,000 on the company to be paid to legal aid.

Conclusion: Those who trade in shares are not consumers, but those who buy shares as an investment are consumers.

Courtesy : Jehangir Gai

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ALERT – MAKE MY TRIP DOES NOT RESPOND EVEN WHEN CUSTOMER GRIEVANCES ARE TAKEN UP BY THE MINISTRY OF TOURISM – Jehangir Gai
Consumers, beware of MakeMyTrip.Com. Complaints against the company are on the rise. The company does not even bother to respond to grievances routed through the Minstry of Tourism, Government of India, as is evident from the scanned copy of the letter hereto. As a consumer activist, having received the National Youth Award for Consumer Protection, I feel it is my duty to alert consumers to the uncaring attitude of the company.

Claim cannot be rejected for failure to intimate hospitalization in medical emergency. Consumer forum directs recovery of compensation from erring officials

Background: A mediclaim policy requires the insured to intimate the insurance company or the TPA about a hospitalization. There are times when a medical emergency may arise, where the priority is to get the patient admitted and treated, rather than waste time in digging out the policy to send an intimation about the hospitalization. In such a case, the insurance company attempts to capitalize on the non-intimation by rejecting the claim. This is not permissible as recently held by the South Mumbai District Consumer Forum in the case of Consumer Welfare Association & Anr v/s United India Insurance Co & Anr.

Impact: Maximum number of complaints at the level of the district forum are against insurance companies. Yet, there is no improvement in the attitude of insurance company officials because compensation is paid by the firm for their misdeeds. A change can be expected only if compensation pinches the pockets of erring officials. Hopefully, this judgment should start the beginning of a practice that could bring about a change in the system and compel insurance companies to behave responsibly.

Click Here for the full story by Jehangir Gai – Times of India

Background: Does the imposition of an entry fee amount to imposing unjustified costs on a consumer? Is it an unfair or restrictive trade practice? This interesting issue has been decided by the National Commission in a case filed by the Gujarat government against Big Bazar.

Case Study: Big Bazar, a department store, is a division of Pantaloon Retail. It has branches all over Ahmedabad and other cities. The store periodically frames different schemes to attract consumers and promote its business.

In 2006, the store declared Republic Day as Mega Savings Day. Advertisements were issued stating that store commodities would be sold at lower-than-usual prices, which led to a consumer rush. As the day progressed, it became impossible to regulate customer movement. To restrict entry to legitimate purchasers, the store came up with a scheme of issuing an entry coupon of Rs 50. The value of the coupons could be adjusted against purchases made, and if a coupon was partially utilized, the balance amount was to be refunded. In all, 3,900 coupons worth Rs 50 each were issued between 4pm and 10pm.

The government of Gujarat, through the weights and measures and consumer affairs department, filed a complaint before the district forum alleging that Big Bazar had adopted unfair and restrictive trade practices by collecting Rs 1,95,000 from the sale of the 3,900 coupons. The Forum observed that if the crowd was uncontrollable, the store should have called the police, but had no right to refuse entry or impose an entry fee. Upholding the Government’s contention, it directed Big Bazar to pay Rs1,95,000 along with 9% interest and Rs 10,000 towards mental agony and costs.

The National Commission said that Big Bazar had adjusted the value of the coupons against purchases and allowed the unutilized coupons to be encashed so the entry coupons did not impose any cost on a consumer. It concluded that Big Bazar had not indulged in unfair or restrictive trade practice.

Conclusion: An entry fee does not bring about a manipulation in the price of a product or service, but merely regulates customer crowd. The practice is prevalent worldwide, and is permissible.

Read the full story by Jehangir Gai in The Times of India – Click Here

While the Right To Information Act (RTI) 2005 is well-known, there is another hardly-known tool available in Maharashtra called “Government Servants Regulation of Transfers and Prevention of Delay in Discharge of Official Duties Act, 2006” popularly also known as  Right to Service Act or Transfers and Delays Act (RS Act). In order to bring this Act to light, Moneylife foundation held a seminar “Make the Government Work for you” on 23 May 2014 with Shailesh Gandhi, former Central Information Commissioner (CIC). 
 
Mr Gandhi started the seminar by giving a brief about the foundation of the RS Act as a result of Anna Hazare’s demands, which led to the first ordinance being issued in 2003. The Act was passed in 2006 and the relevant rules came into existence in November 2013. 

You can easily get refund of a train ticket bought through the Railways passenger reservation system or PRS, either online or through a  ticketwindow. There may be some delay in refund for tickets bought from private re-sellers

If there is one technology based product in India, which showcases domestic Indian skillsets as well as has a history of being able to very deftly and adroitly avoid falling into the trap of lop-sided foreign solutions, then it has to be the Indian Railway’s Passenger Reservation System, or PRS for short. Handling between 1.5 to 2.25 million separate transactions per day, each transaction being for anything from one to six passengers, covering over 2,500 trains with over 50 different classes of travel and no count on quotas, concessions and more – the PRS has set a benchmark all over the world, which some of us who have worked on databases as well as other technologies can only begin to understand.

But surely do we appreciate and feel proud of as Indians. Just imagine the complexities? I wish Unique Identification Authority of India (UIDAI) and Aadhaar had been handed over to Indian Railways, it would not have been the mess it is now, and the information would have stayed on in India.

That it gets stick from a variety of segments, from passengers to competitors to simply jealous entities, is par for the course when something is Indian and successful. Especially from Indians, and very especially from ex-pat Indian origin types, sadly, but true. Very bluntly, I do wish the Indian Railways would take time out to propagate this one aspect of technology, if for not only blowing their own bugle, but then also to be able to build some self-confidence in millions of other Indians who are daily subjected to all sorts of perception management tricks on forcing Indians to believe that they can not compete with the world.

Having said that, there are multiple problems faced by people using the PRS, not all of which are the fault of the service provider Indian Railways. Fact remains, things have only become better, and given the pace of lack of change mostly elsewhere, this is like being able to send a manned space mission to Mars from India.

Which does not in any way reduce the reality that yes, many people appear to and do have problems when seeking refunds, though here again, Indian railways score better than most other cash-handling utilities and services in India. Try getting a refund from an airline, for example? Also, for the 700-1000 million transactions per annum, refunds are a very small number.

Still, you bought a ticket, and now want a refund?

Obviously, when the numbers are so vast, this is not going to happen without checks and balances. We are assuming here that you want a refund in most cases for cancellations done well before departure time, at least four-six hours. What happens, then, when you need a refund for a railway ticket bought using the PRS?

1) Ticket bought for cash over the counter – refund is as fast as the queue will permit, subject to the complex rules regarding cancellation of refunds. It is good to learn about the rules before heading for a refund. They can be found written on the wall, in time-tables, and online.

2) Ticket bought online from IRCTC – My experience has been that for dozens of bookings a year, and about half of them resulting in cancellations, I have not had a single bad experience. Few times that there was some confusion, due to missing a train or other issues, there was nothing that a couple of emails did not resolve. Every paisa paid online is refunded, subjected to the rules prevailing – including service tax refunds.

3) Tickets bought through other private websites – These are the complicated and troublesome episodes, because here we have additional rules and fine print from the private website. I will be very frank, but the fine print with these private websites appears to keep changing all the time, and there is not much that an external agency can do to help since these terms and conditions are seldom available in printed hard copy form anywhere.

Which, in a way, is the solution we would expect from Indian Railways too – that they incorporate terms and conditions from private re-sellers on Indian Railways pages, both online and hard-copy. And that these terms and conditions, especially for refunds, be changed only after due information to the Indian Railways.

At the end of the day, I, as a railway passenger, am a customer of the primary vendor, Indian Railways. Any problems created and not resolved by their intermediaries with us as customers will only reflect badly on them.

And that is why many of us appear to blame Indian Railways when the real issue often lies with other vendors or providers. From crowds outside railway stations to sanitation to food to ticket refunds.

Clarity and accountability set by Indian Railways for all issues pertaining to PRS would be of great help not just for customers but also for the name and fame of Indian Railways too.

PS: What about refunds for tickets unused because of missed trains and connections?

Fear not, Indian Railways have pre-empted pretty much every contingency here, and from “Ticket Deposit Receipt” system both online and across the counter, to writing a letter, there is a rule and there is a refund. Look for it, send an email, ask around – and it will happen. Some extreme cases that I have resolved in my own experience include –

# child chewing up tickets before boarding the train.
# child floating the ticket away as “boat” in water gutter near platform.
# fell asleep on platform bench and train departed without me.
# whole group of school-children penalised for misspelling names.

There are good human beings at Indian Railways, it is just that they expect you to take some time out to read and understand their rules and regulations, too. Fair enough?

(Veeresh Malik started and sold a couple of companies, is now back to his first love—writing. He is also involved in helping small and midsize family-run businesses re-invent themselves.)

http://moneylife.in/article/how-to-get-refund-from-indian-railways/37911.html