Amway asked not to sell two products by consumer panel

The apex consumer commission has asked global direct selling firm Amway not to sell two of its misbranded and adulterated products and slapped a fine of Rs one lakh on it for unfair trade practices.
The National Consumer Disputes Redressal Commission (NCDRC) directed Amway India Enterprises Pvt Ltd to remove Amway Madrid Safed Musli (Apple) and Kohinoor Ginger Garlic Paste from the market within six weeks.
The NCDRC upheld the 2007 findings of the district consumer forum in Andhra Pradesh which had found the apple misbranded and the ginger-garlic paste adulterated.
In its order, NCDRC Presiding Member Prem Narain said these products have been sold to certain consumers who have "suffered on account of the unfair trade practice" adopted by the company.

"I deem it appropriate to set aside the order of the State Commission" which had quashed the district forum's order for awarding exemplary damages of Rs one lakh, he said, directing that the amount be deposited with the Consumer Welfare Fund.
The apex consumer body also asked the company to issue corrective advertisement as ordered by the District Forum.

According to the petition filed by Consumer Guidance Society, an Andhra Pradesh-based NGO, three items were found to be misbranded or adulterated after samples of products of the firm were tested by the Chief Public Analyst of State Food Testing Laboratory.

The district forum had directed the company in 2007 to remove two of the three adulterated/misbranded products from the market and not indulge in such unfair trade practices in future. It had also imposed Rs one lakh as exemplary damages and asked Amway to deposit the amount in the Consumer Welfare Fund.
The state commission had partly allowed the firm's appeal by asking it not to pay the damages on the ground that the NGO did not suffer any loss.
However, the apex consumer commission considered this as a material irregularity and said the State Commission had perhaps mistaken this cost to have been awarded to the NGO, which was not correct.