Page 3 - Consumer Protection

Heavy rain damage covered under policy for 'flood' and 'inundation'

The National Commission concluded that the policy's coverage for flood and inundation would include losses caused by heavy rains

CCPA slaps Rs 5 lakh fine on Shankar IAS Academy for misleading ads

The Central Consumer Protection Authority (CCPA) has imposed a Rs 500,000 fine on Shankar IAS Academy for misleading advertisements related to the 2022 civil service exam, the regulator said on Sunday. The CCPA, led by Chief Commissioner Nidhi Khare, found that the coaching institute made false claims about its success rate and the nature of courses taken by successful candidates. In its advertisement for the 2022 UPSC Civil Service exam, Shankar IAS Academy claimed "336 selections out of 933 at All India Level", "40 candidates in Top 100", and "2 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy". The institute also advertised itself as the "Best IAS Academy in India". However, the CCPA discovered that Shankar IAS Academy "deliberately concealed" information about the specific courses taken by the successful candidates it advertised for. "This practice consequently attracts consumers into buying paid courses advertised by the coaching institutes,"

Police department held liable for lapsed policies

The National Commission dismissed the police department's defence of discontinuing the premium deductions based on oral instructions, without obtaining a written confirmation

Vehicle cover transfers to buyer on registration

The National Commission ruled that the insurance policy is deemed to be automatically transferred to the purchaser when the vehicle is registered in their name

Govt proposes mandatory labelling for bulk pre-packaged commodities

The Consumer Affairs Ministry on Sunday proposed an amendment to the Legal Metrology (Packaged Commodities) Rules, 2011, seeking to mandate the declaration of key information on pre-packaged commodities weighing over 25 kg or measuring more than 25 litres sold in retail markets. The move aims to close a loophole that currently exempts such bulk packages from displaying crucial details like maximum retail price (MRP), best before date, manufacturer information, and country of origin. "It is observed that packaged commodities above 25 kg are also available in the market for retail sale, which is not as per the intention to make all declarations on pre-packaged commodities meant for retail sale," the ministry said in a statement. The proposed amendment would require manufacturers, packers, and importers to provide comprehensive labelling on all pre-packaged goods intended for retail sale, regardless of quantity. This is expected to bring clarity to the industry and aid consumers in ..

Force majeure plea must be backed by evidence

The National Commission relied on past Supreme Court judgments to conclude that failure to hand over timely possession entitled the allottee to a refund along with interest

Municipal corp's plan revisions deemed illegal

The judge ruled that the disclosures in the original plan would remain valid and declared the subsequent eight revisions illegal

Revive policy or accept surrender value

The National Commission noted that if the policyholder wanted reinstatement, he should have made a written request and cleared the premiums

Frivolous complaint can cost consumer dearly

National Commission concluded that false and baseless allegations had been made in the complaint to claim a highly exaggerated and atrocious amount of compensation

Bank accountable for clearing forged cheque

Citing a Reserve Bank of India circular, the National Commission stated that the liability for honouring a forged cheque vests with the paying bank

SC states celebrities, influencers equally accountable for misleading ads

Top court asked FSSAI and the Ministry of Consumer Affairs, Food and Public Distribution to file affidavits on action taken by CCPA against false or misleading ads in food and health sector

Basic fire policy doesn't cover self-ignition

The National Commission, on reviewing the Fire and Standard Perils Policy, found that spontaneous combustion is excluded unless additional coverage for it is specially purchased

Typo can't be basis for denial of claim

The State Commission concluded the insurer could not take advantage of a typographical error on the bank's part to repudiate a legitimate claim

Alcobev industry seek clarity on brand extension vs surrogate ads

List of products sold under the same brand name as alcobev for the past three years, including details of states where they were marketed

'53% consumers did not receive refund for inherently defective products'

At least 74% consumers had reached out for action on defective products, of which, only 21% got a product replacement or refund

Illegal construction can lead to claim denial

Since the insured didn't oppose the illegal addition to the structure, the National Commission held the claim for loss of stock had been rightly repudiated

Doctor liable to penalty for causing disability

The National Commission observed that evidence indicated Dr Gupta was conducting private practice while employed with a government Primary Health Centre, which was a serious misconduct

Buyer not bound by one-sided contract

The National Commission held that a buyer can neither be compelled to take possession without an Occupancy Certificate nor kept waiting endlessly for the flat's completion

Bank bound to honour bearer cheque

The National Commission pointed out that by issuing a "self" cheque payable to "bearer", Susheel had relinquished the right to question its encashmentc

Dark patterns: Govt sets guidelines of the game for digital business

These are tactics used by online platforms to manipulate or heavily influence customers to make certain choices