Is it possible to take legal action against celebrities who take part in misleading advertisements?
Radha Moorthy, Mumbai
Yes, action can be initiated against a celebrity with regard to misleading ads. As per the Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA) has powers to take action against such ads and those who endorse them. The CCPA has powers to investigate and issue directions to the endorser (celebrity) or advertiser or publisher, to discontinue such advertisement or to modify the same in such a manner and within such time as may be specified in that order.
The Act mandates that these celebrities should exercise due diligence to verify the veracity of the claims made in the ads. If this condition is not satisfied, then the endorser shall be liable to a penalty up to Rs10 lakh. In addition, the CCPA may, for every subsequent contravention impose a penalty, up to Rs50 lakh.
The CCPA also has powers to prohibit such endorser from appearing in any ad for a period of up to one year. The penalty and punishment are decided mainly by factors such as population and the area affected, frequency and duration of such offence, vulnerability of the class of persons likely to be adversely affected and gross revenue from the sales effected by virtue of such offence.
I had taken a loan from a credit society (patpedhi) in 2019, which was to be returned in seven years. Now since I sold my property, I am able to repay the loan in advance so that the burden of interest can be reduced. But the patpedhi is not accepting early repayment. What is the way out?
S Sonar, Akola
Not accepting early repayment amounts to an unfair contract. The credit society can impose some penalty, but it cannot refuse to accept the early repayment. As per Section 2 (46) of the Consumer Protection Act, 2019, an “unfair contract” means a contract between a service provider on one hand, and a consumer on the other, having such terms which cause significant change in the rights of such consumer, including refusing to accept early repayment of debts on payment of applicable penalty.
But I would advise you to check the terms and conditions of the loan agreement. If early settlement is prohibited, then you can challenge it in the consumer state commission forum.
I have received a credit card in my name from the bank without any such request from me. I did not use the card. But surprisingly, in the subsequent month, I received a bill against this card towards purchases that I have not made. I tried to contact the bank and their customer care number, which kept me on hold for more than 30 minutes. Whom should I approach for redressal of my grievance?
Vikram Patil, Dhule
Banks cannot issue unsolicited credit / debit cards to consumers. The Reserve Bank of India has issued guidelines that prohibit banks from issuing unsolicited cards. As per Clause 8.0 of these guidelines, banks cannot issue credit cards / facilities without written consent of the consumer. If any bank does that then they are required to reverse the charges along with a penalty without demur to the consumer. The amount of penalty shall be twice the value of the charges reversed.
In addition, you can approach the banking ombudsman to claim compensation towards the time and expenses incurred and harassment and mental agony suffered by you. The ombudsman will determine the amount of compensation payable.
Since you have mentioned that you received a bill without the card being used by you, there is a possibility that your card might have been misused before it reached you. The RBI has clarified that any loss arising out of misuse of such unsolicited cards would be the responsibility of the card-issuing bank. As per these guidelines, the banks have to constitute a grievance redressal machinery within the bank and designate a grievance redressal officer. The name and contact number of such officers should be mentioned on the credit card bills.
In case you do not get a satisfactory response from the bank within 30 days of lodging the complaint, you can approach the ombudsman. In such a case, the bank shall be liable to compensate you for the loss of your time, expenses, financial loss as well as for the harassment and mental anguish suffered by you due to the fault of the bank and where the grievance has not been redressed in time.
(Dr Archana Sabnis is an expert on consumer laws who is practising at consumer disputes redressal fora at district, state and national levels since 2000. She is on the panel of conciliators of Maha RERA and is associated with the Mumbai Grahak Panchayat.)