The Rajasthan State Consumer Disputes Redressal Commission has ordered Reliance Retail to pay Rs 5,501.80 to a consumer from Jaipur, determining that the company’s failure to honor an advertised promotional discount constituted an unfair trade practice.
The decision, delivered on June 29 by a bench consisting of judicial member Mukesh and member Raminivas Saraswat, resolved an appeal filed by Reliance Retail against a March 18, 2025, ruling by the Jaipur II District Consumer Disputes Redressal Commission. While the state commission agreed that the retailer engaged in unfair trade practices, it reduced the compensation for mental agony from Rs 10,000 to Rs 500, noting that the original amount was excessive given the specific circumstances of the case.
Under the modified order, Reliance Retail is required to return the overcharged amount of Rs 1.80, provide Rs 500 in compensation for mental agony, and pay Rs 5,000 to cover the consumer’s legal costs.
Origin Of The Dispute
The case originated from a New Year advertising campaign run by Reliance Retail from January 3 to February 10, 2021. On January 7, 2021, Jaipur resident Virendra Singh bought groceries totaling Rs 276.50 at a Reliance Retail outlet. Upon reviewing his receipt, Singh observed that a packet of Patanjali biscuits, priced at a maximum retail price of Rs 30, was billed at full cost despite store advertisements promising a 6 percent discount across products.
Applying the advertised 6 percent discount would have reduced the price of the biscuits to Rs 28.20. Singh requested a refund for the excess charge of Rs 1.80, but the store refused, prompting him to file a formal complaint with the consumer forum.
Retailer Defends Charges
Reliance Retail contested the complaint, asserting that Patanjali biscuits were not included in the promotional discount event. The company also argued that because Singh did not register an immediate complaint with store staff during his visit, the retailer could not be held responsible for any service deficiency or unfair trade practice. Additionally, in its appeal, the company argued that awarding Rs 10,000 for a dispute involving Rs 1.80 was highly disproportionate.
The state commission rejected the retailer’s arguments. It pointed out that Reliance Retail did not explicitly deny the presence of the 6 percent discount in its initial written statement. Furthermore, the company failed to present any advertisements or documentation proving that Patanjali products were excluded from the promotional offer.
In contrast, the commission found that the photographs and marketing materials submitted by the consumer clearly showed active advertisements for a 6 percent discount. The commission concluded that the promotional campaign had led the consumer to buy the product, and denying him the discount was a clear violation.
Protecting Consumer Rights
The commission emphasized that the small size of an overcharge does not diminish the gravity of misleading promotional offers, noting that unhonored discounts are serious matters under consumer protection laws.
Additionally, the ruling reinforced the established legal principle that retail companies are prohibited from charging customers for carry bags that display the company’s brand logo, as such packaging serves as active advertising for the business.
