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LATEST NEWS UPDATES | On behalf of consumers, govt to sue Nestle for damages -Dipak K Dash

On behalf of consumers, govt to sue Nestle for damages -Dipak K Dash

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published Published on Jun 7, 2015   modified Modified on Jun 7, 2015
-The Times of India

NEW DELHI: The consumer affairs ministry is preparing a "strong" case against Nestle on the Maggi issue, which it will file in the national consumer forum. Sources said the ministry would file a petition on behalf of consumers, seeking damages from the multinational for selling an unsafe product, adopting unfair trade practices and running misleading advertisements.

Consumer affairs minister Ram Vilas Paswan held a meeting with top officials on Friday to discuss the petition.

As per Section 12(d) of Consumer Protection Act, 1986, the Central or state government can file a complaint in the National Consumer Dispute Redressal Commission (NCRDC) in its individual capacity or as a representative of interests of consumers in general. However, no case has ever been filed under this section and if the ministry does go ahead, this will be a first.

The Act also has a provision — section 14(hb) — under which the forum can direct the opposite party "to pay a sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently." It also says that the minimum amount payable shall not be less than 5% of the value of defective goods sold to such consumers.

As per section 10(A) of Consumer Protection Rules, the amount shall be credited to the Consumer Welfare Fund, where affected consumers cannot be identified. The fund can be used for welfare of consumers and even for reimbursing legal expenses incurred by a complainant, or class of complaints in a consumer dispute.

An official said the case would "send a clear message to all food and other manufacturers that they can't undermine consumer rights". Sources said that the ministry will seek copies of the Maggi test reports from Food Standards and Safety Authority of India (FSSAI) to prepare the case and it would be drafted by a senior law officer in the government.

The ministry has also finalized another amendment to the Consumer Protection Act, which includes a "product liability" clause to rein in errant manufacturers and vendors. As per this clause, the manufacturer or vendor will have to compensate for injury or damage caused to a consumer by a defective product or deficiency in service.

Meanwhile, CEO of FSSAI Yudhvir Singh Malik said that for packed food items the authority would come out with a guideline which would make it mandatory for every manufacturer to take their products to the approved laboratories every six months and submit the test reports to the regulator. As per the present protocol, it's the responsibility of the manufacturer to adhere to the quality it had declared while getting the product approval. He added that people trusted that that packed products were safe for consumption and manufacturers must ensure that this faith is not shaken.


The Times of India, 7 June, 2015, http://timesofindia.indiatimes.com/india/On-behalf-of-consumers-govt-to-sue-Nestle-for-damages/articleshow/47570966.cms


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