In a significant ruling upholding consumer rights and cracking down on unfair trade practices, the District Consumer Disputes Redressal Commission (Jaipur-II) held snack food giant PepsiCo India Holdings Pvt. Ltd. liable for severe deficiency of service after a packet of its signature ‘Lay’s’ potato chips was found to contain less than a third of its declared weight.
The Commission, headed by President Ashok Sharma alongside members Ajay Kumar and Supriya Agarwal, directed PepsiCo to refund the cost of the packet (₹5) with interest, along with ₹8,000 towards mental harassment and litigation expenses incurred by the complainant.
The Incident: A Noticeably Light Snack
The case dates back to November 10, 2020, when Jaipur resident Chandrabhan Jalan—proprietor of M/s Jalan Welding & Hardware Store—purchased various grocery items from Metro Cash & Carry India Pvt. Ltd. located in the Vishwakarma Industrial Area. Among the purchased items was a ₹5 packet of Lay’s potato chips (under invoice no. 4504T 102009356) intended for serving guests at his residence.
Upon handling the sealed packet, Jalan noticed that it felt extraordinarily light. Curious, he decided to weigh the product and discovered it contained merely 4 grams of chips, despite the packaging advertising a net weight of 15 grams—a shortfall of over 73%.
When the matter was initially brought to the retailer’s attention, Jalan alleged he was met with uncivil and dismissive behavior. Aggrieved by the deficiency and unfair trade practice, he approached the District Consumer Disputes Redressal Commission on April 6, 2022 (Complaint No. 160/2022), seeking compensation under Section 35 of the Consumer Protection Act, 2019, through legal counsel Meenakshi Agarwal.
Retailer Shifted Blame to Manufacturer; PepsiCo Absent
During the proceedings, Metro Cash & Carry (Opposite Party No. 1), represented by advocate Naved Rafiq, admitted to the purchase but maintained that the retailer bears no culpability for manufacturing defects. Counsel argued that any underfilling inside an intact, hermetically sealed packet arose from mechanical or packaging errors during the manufacturing process at PepsiCo’s production facilities.
PepsiCo India Holdings Pvt. Ltd. (Opposite Party No. 2), the manufacturer, failed to appear before the Commission despite receiving due legal notice. Consequently, ex-parte proceedings were initiated against the corporation on July 22, 2022. While PepsiCo later filed an application on October 10, 2023, through counsel Ankit Sethi seeking to set aside the ex-parte order, the Commission dismissed the plea on November 8, 2023.
Commission Rebukes ‘Unfair Trade Practices’
Delivering its final verdict, the Commission observed that because the manufacturer did not counter or contest the evidence, the complainant’s claim stood corroborated by the submitted documents and purchase invoices.
The bench also recorded stern observations regarding large corporations shortchanging consumers on package weight:
“The opposite parties operate a vast network of stores and touchpoints nationwide, visited by millions of consumers daily. Selling underweight goods across such a scale amounts to reaping unfair profits of crores of rupees at the expense of ordinary consumers. Such conduct constitutes a grave deficiency in service and squarely falls under unfair trade practices.”
Concluding that the sealed packaging defects fell strictly under the manufacturer’s responsibility, the bench dismissed all charges against the retail seller, Metro Cash & Carry.
Breakdown of the Order
The Commission directed PepsiCo India to comply with the following relief within one month of the order:
- Product Refund & Interest: Refund the purchase price of ₹5, accompanied by an annual interest rate of 6% calculated from the date the complaint was filed (April 6, 2022) until full repayment, payable via cheque/demand draft submitted to the Commission in the complainant’s name.
- Compensation for Mental Agony: Pay ₹5,000 to the complainant for mental distress and inconvenience.
- Litigation Expenses: Pay ₹3,000 to cover legal and procedural costs incurred by the complainant.
- Default Penalty Clause: Failure to disburse the total sum of ₹8,000 within the one-month deadline will attract an additional interest penalty of 6% per annum on the entire amount from the date of the order until the date of actual payment.
The ruling reinforces accountability for packaged consumer goods manufacturers, emphasizing that even minor discrepancies in nominal low-cost items cannot be dismissed when corporate standards fall short of legal declarations.
- Case Title: Chandrabhan Jalan v. Metro Cash & Carry India Pvt. Ltd. & Anr.
- Case No.: Consumer Complaint No. 160/2022 (District Consumer Disputes Redressal Commission, Jaipur-II)
