Supreme Court Issues Notice On PIL Seeking Display Of Details Of Distributor, Dealer And Shop Owner On Consumer Goods

A Bench of Justice Vikram Nath and Justice Sandeep Mehta issued notice and sought responses from the Centre and the States within four weeks.

The petition seeks a declaration that every consumer has the right to know not only about the Quality, Quantity, Potency, Purity, Standard, Manufacturing/Expiry Date and BIS/FSSAI Certification of goods and products, but also about the details of the distributer, dealer, trader, seller and shop owner, to seek redressal against unfair trade practices, restrictive trade practices and unscrupulous exploitation in spirit of Section 2(6) and 2(9) of the Consumer Protection Act 2019.

It further states, “Petitioner also seeks direction to Centre/States to ensure that every Distributor/Dealer/Trader/Seller/Shop Owner display full details of Registration/License including Name, Address, Number of Employees and Phone Number at the Entry Gate in Bold letters on a Display Board visible to an ordinary person of ordinary prudence.

It has been contended in the petition that the ‘Right to Know’ about the seller is secured under the Consumer Protection Act read with Article 19 of the Constitution and that every consumer has a right to access details of the product or service as well as the identity of the seller before making a purchase. The petition states, “Right to Know is crucial for consumer to make informed choice/decisions and to protect himself from unfair/restrictive trade practices and unscrupulous exploitation.”

The petition further explains that this includes the real name, address and phone number of the seller, and added, “Right to Know helps consumers avoid falling prey to fraudulent or deceptive Distributer, Dealer, Trader, Seller and Shop Owner, who might misrepresent product / services or disappear after sale, purchase and money transaction.” The petition states that this right is essential for filing complaints under Section 2(6) and seeking redressal through consumer redressal forums. It reads, “When Distributer, Dealer, Trader, Seller and Shop Owner are transparent about their details, it fosters a fair and competitive market where consumers can make informed choices.”

It further states that consumers have the right to know whether the seller is a registered licensee and that “Right to Know extends to details about the goods, product or service, including quality, quantity, price, potency, purity, ingredients, certification & safety standards.” The petition also asserts that consumers must be made aware of warranty information, return policies and grievance redressal procedures, stating, “In essence, the Right to Know empowers consumers to be informed/protected and to make choices when engaging in sale, purchase and money transactions.”

Referring to online marketplaces, the petition states that the Consumer Protection Rules require them to collect, verify and disclose certain information about high-volume sellers to deter fraud and promote transparency. The petition points to Section 19 and states that it aims to safeguard consumers from unfair trade practices, misleading advertising, and exploitation. The Central Consumer Protection Authority (CCPA), it is submitted, was established under the Act to promote and protect consumer rights, prevent unfair trade practices, and enforce regulations in the marketplace.

The petition submits that the injury to consumers is “extremely large,” stating, “Because due to unavailability of proper Display Board, consumer finds it difficult to seek legal redressal against the owner for poor quality, quantity, purity, over pricing, unfair trade practices, restrictive trade practices and unscrupulous exploitation. Because consumer has right to apprise himself of authenticity of the Shop, Eateries, Restaurants etc. so as to make sure that they are not bogus, illegal or purporting to be someone else. Because ‘Right to Know’ of the consumer, guaranteed under Article 19, is essentially violated as he is not cognizant of who he is dealing with. Because ‘Right to Health’ of the consumer guaranteed under Article 21, is violated when restaurant/eatery serves adulterated/bad food while purporting to be a part of a franchise of restaurants, thereby exploiting people’s faith in the same. Because ‘Transparency’ is integral part of Right to Trade/Business, which is impossible without displaying Owner’s Name & Address. Because consumer rights include right to be protected against the marketing of goods, products and services, which are hazardous to health and right to be informed about the quality, quantity, potency, purity, standard and price of goods, products and services.”

The petition seeks directions to operationalise the Right to Know in both offline and online retail environments, and to ensure that sellers cannot operate anonymously or without accountability to consumers.