A consumer court in Delhi on Monday ordered Emami Limited to pay Rs 15 lakh in damages for engaging in unfair trade practices and misleading advertisements for its “Fair and Handsome” men’s cream.
Scroll has seen a copy of the order.
The court ruled that Emami’s packaging, labelling and television advertisements had falsely promised consumers “fair skin” within three weeks of using the product.
The court also noted that the product created an “aura and strong impression” that consumers would achieve visibly lighter skin by following the instructions printed on the package.
“The subject product presented in packaging and labelling with visual of a man coupled with words and other surroundings…described above, is also instructions for benefit of fair of skin [for man] for applying the product cream locally for three weeks as ‘apply on face and neck twice daily after cleansing for faster glowing fairness’,” the court said in its order.
Emami was directed to pay Rs 14.5 lakh to the Delhi State Consumer Welfare Fund and Rs 50,000 as compensation to the complainant Nikhil Jain, who had filed the case in 2013. Emami was also ordered to pay Rs 10,000 to the complainant as litigation costs.
Monday’s order marks the second time that Emami has been fined in the same case. In 2015, the same consumer court ruled in favour of Jain and Emami was directed to pay a Rs 15 lakh fine for misleading claims about its men’s radiance cream. That order was, however, set aside after an appeal.
The ruling on Monday came after the case was remanded to the District Consumer Dispute Redressal Commission for a fresh hearing.
The complainant argued that despite using the cream as instructed, his complexion did not get any fairer as promised by Emami’s advertisements and packaging claims. He accused the company of exploiting consumers through celebrity-endorsed advertisements that created false expectations.
The court rejected Emami’s claim that its product had been scientifically tested and was meant for men aged 16 to 35. It observed that none of these restrictions were mentioned on the product’s packaging or in advertisements.
“When these are necessary requirements, why OP [Emami] with-held it from mentioning on the packaging?” the court asked. “In given circumstances, the instructions given on the packaging is complete code to be followed for use of product.”
The court also directed Emami to withdraw misleading advertisements and refrain from using deceptive branding on its products. The company has been given 45 days to comply with the order.
Failure to comply could result in further legal consequences, the court warned the company, adding that its principal officers would be held accountable for implementation of the ruling.
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