Red Tape ordered to pay Rs 8,000 compensation after charging customer Rs 10 for carry bag

A consumer commission in Rohtak, Haryana, has directed footwear brand Red Tape to refund Rs 10 charged for a carry bag and pay Rs 8,000 towards compensation and litigation costs, holding that the practice amounted to deficiency in service and an unfair trade practice., reported TOI.

The dispute arose after a customer was charged separately for a carry bag while purchasing a pair of shoes from a Red Tape outlet in Rohtak.

Why did the customer approach the consumer commission?

The complainant purchased a pair of black Red Tape shoes for Rs 2,069.70 from the company's Rohtak store on April 1, 2023. Along with the footwear, the store charged an additional Rs 10 for a carry bag.

According to the complaint, the customer requested the store to provide the carry bag free of cost, but the staff declined, saying it was company policy to charge for it, reported TOI.

Alleging that the additional charge was illegal, the customer moved the consumer commission seeking a refund of the Rs 10, Rs 50,000 as compensation for harassment and mental agony, and Rs 22,000 towards litigation expenses.

What was Red Tape's defence?

In its reply, Red Tape argued that charging for carry bags was intended to promote environmentally responsible behaviour and discourage unnecessary use of bags.

The company also submitted that customers were informed through signboards at the store entrance to bring their own bags, that purchasing a carry bag was entirely optional, and that the bags sold did not carry the company's logo or serve any promotional purpose, reported TOI.

What did the consumer commission say?

The bench comprising President Nagender Singh Kadian and Members Tripti Pannu and Vijender Singh examined the purchase invoice, which clearly showed the Rs 10 charge for the carry bag. The commission also took note of the carry bag that had been placed on record.

It further examined an affidavit filed by Red Tape and observed that the company's own submission weakened its defence.

"I say that the opposite party is adamant on his act and charged unnecessarily Rs. 10/- for carry bag... The act and conduct of the opposite party is illegal, arbitrary and against the provision of law and principle of natural justice," the affidavit said.

Referring to the affidavit, the commission observed that it effectively amounted to an admission by the company.

"Opposite parties have itself admitted that they have unnecessarily charged Rs 10 for carry bag and that such action was not justified."

The commission held that, taken as a whole, the affidavit supported the complainant's case and established that the separate charge for the carry bag was unjustified. It concluded that Red Tape's action amounted to both a deficiency in service and an unfair trade practice.

What compensation did the commission award?

The consumer commission directed Red Tape to:

• Refund the Rs 10 charged for the carry bag.
• Pay Rs 4,000 as compensation for deficiency in service.
• Pay Rs 4,000 towards litigation costs.

This takes the total amount payable to Rs 8,010.

The commission also ordered the company to comply within 30 days. Failing this, Red Tape will have to pay an additional penalty of Rs 50 per week until the entire amount is paid.

(with TOI inputs)