A recent ruling by a Bengaluru consumer court against liquor retailer Tonique has, once again, brought to the forefront the contentious issue of businesses charging customers for carry bags that prominently display their brand names, logos and outlet details. The Bengaluru urban district consumer disputes redressal commission unequivocally deemed this practice an 'unfair trade practice,' stating that customers are essentially being made to pay for the retailer's advertising.
In this instance, Tonique was ordered to compensate the customer Rs5,000, contribute Rs1 lakh to the consumer welfare fund, refund the Rs14.29 charged for the bag and cover litigation costs. This verdict underscores a growing sentiment within Indian consumer courts that forcing customers to purchase branded bags amounts to making them foot the bill for the seller's marketing efforts. This legal interpretation aligns with a growing number of rulings nationwide that view this practice as a deficiency in service and a clear instance of unfair trade.
The case involving Tonique is far from an isolated incident, as evidenced by a series of similar rulings from consumer courts across different regions of India. In another instance, in October 2023, a consumer court in Delhi
directed Reliance Trends to pay Rs3,000 for charging a customer Rs7 for a carry bag. While the specifics of branding were not the sole focus, the underlying principle remains—sellers are responsible for providing the means for customers to carry their purchased goods without imposing additional, often unwanted, costs. This ruling suggests that the provision of a carry bag is considered an integral part of the service offered by retailers.
The case in Balangir, Odisha, where a
shopping mall was fined Rs33,000 for charging a customer Rs16 for a cotton carry bag, also underscores the issue of businesses imposing carry bag charges. While the branding aspect might not have been the central argument in this case, the court's disapproval of the undisclosed and mandatory charge reinforces the broader consumer right against unexpected costs associated with purchases. The customer in this case, had selected dresses worth Rs2,941 from the mall and at the time of purchase was forced to pay an additional charge for the carry bag.
Businesses often defend this practice by claiming that the purchase of the bag is optional. However, consumer courts have frequently dismissed such arguments, emphasising that the need for a carry bag arises directly from the purchase made, and branded bags primarily benefit the seller through increased visibility. The courts argue that the cost of this advertising should be integrated into the price of the goods or borne separately by the business, not forced upon the consumer at the point of sale.
Legal Rationale against Charging for Branded Bags
Under the Consumer Protection Act, 2019, several provisions offer the legal basis for these rulings. Charging for branded bags is viewed under:
• Section 2(11) – Deficiency in Service: Forcing customers to pay for a bag that essentially serves as a free advertisement is seen as a failure in service delivery.
• Section 2(47) – Unfair Trade Practice: Mandating payment for promotional items benefits the retailer at the consumer’s expense.
• Section 39 – Powers of the District Commission: Courts have broad powers to direct refunds, award compensation, and impose costs on retailers engaging in such practices.
Courts across jurisdictions have consistently held that retailers must either provide branded carry bags free of cost or, if they choose to levy charges, do so only after informed consent from the customer. The underlying principle is that consumers should not unknowingly become an advertising channel for the retailer.
Despite the clear and repeated rulings, many retailers still continue to charge for carry bags. The implications of these rulings are significant. Businesses that continue to charge for branded carry bags risk facing legal penalties, financial repercussions and damage to their reputation. Consumers, on the other hand, are increasingly empowered to challenge these charges, armed with the knowledge of their rights and the growing precedent set by consumer courts across the country.
Have you encountered brands that still insist on charging for their branded carry bags? Share your experiences in the comments below.
