If you are stuck in such a situation, here is what to do.

Mr. Rohan Mehra, a resident of Janakpuri, was excited about an online flash sale on the “StyleSphere Fashions” mobile app. He purchased a premium leather jacket for Rs. 4,500, a significant discount from its original price. The company’s policy clearly stated that while purchases could be made online, any returns had to be processed in their physical stores. A week later, Mr. Mehra decided to return the jacket as it didn’t fit well. He visited the StyleSphere Fashions store at the Grand City Mall in Janakpuri.

To his shock, the store manager informed him that the refund would only be Rs. 2,800. The manager explained that the company’s policy was to refund the product’s ‘current selling price’ in their system, and since the flash sale was over, the jacket’s price had reverted to a lower, post-sale value. Mr. Mehra argued that he should be refunded the amount he actually paid, which was Rs. 4,500, as reflected on his invoice. The store refused, creating a frustrating situation where the consumer was being penalized for the company’s arbitrary and unfair refund policy.

Advice in such cases

When you face such a situation, it is crucial to act systematically. The law is on the side of the consumer in cases involving such unfair trade practices. Do not accept the partial refund if you can help it, as it might be construed as an agreement. If you have already accepted it, ensure you have documented proof of the discrepancy.

• Document Everything: Keep the original invoice, payment confirmation, screenshots of the product page and return policy at the time of purchase, and any communication with the company.
• Formal Communication: Send a formal email or a registered letter to the company’s head office, clearly stating the issue and demanding the full refund. This creates a paper trail.
• File a Consumer Complaint: If the company does not resolve the issue, you can file a complaint with the Consumer Disputes Redressal Commission. This can now be done online through the E-Daakhil portal.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

This issue is primarily governed by the Consumer Protection Act, 2019. The retailer’s policy of refunding the current price instead of the purchase price is a classic example of an “unfair trade practice.”

• Section 2(47) of the Consumer Protection Act, 2019: This section defines “unfair trade practice.” A policy that imposes unjustified costs or obligations on the consumer, such as offering a partial refund for a full-priced return, falls squarely within this definition.
• Consumer Rights: The Act guarantees several consumer rights, including the Right to be Informed about the quality, quantity, potency, purity, standard, and price of goods, and the Right to Seek Redressal against unfair trade practices. The retailer’s non-transparent and detrimental refund policy violates these rights.

If you are the complainant

If you decide to take legal action and become the complainant, your approach should be methodical.

• Gather All Evidence: Your case will be built on the evidence you provide. Collect the purchase invoice, bank statements, product photos, screenshots of the return policy, and all written communication with the retailer.
• Send a Legal Notice: It is advisable to have a lawyer send a formal legal notice to the company. This notice outlines your grievance, the legal provisions violated, and your demand for a full refund and possibly compensation. Often, companies resolve the issue after receiving a legal notice to avoid litigation.
• File the Complaint: If the notice is ignored, file a formal complaint in the appropriate consumer forum (District, State, or National, based on the value of the goods and compensation claimed).
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

If you are the victim

As the victim of an unfair trade practice, your immediate actions can significantly impact the outcome.

• Stay Calm but Firm: When at the store, do not get into a heated argument. Calmly state your position and ask for the store’s policy in writing. Note down the name of the manager or employee you spoke with.
• Create a Record: Immediately after the incident, send a detailed email to the company’s customer support. Describe the events, mention the store location, the staff’s name, and attach a copy of your invoice. State that their policy is unacceptable and illegal.
• Do Not Surrender Your Proof: Never hand over your original invoice or any other original document to the store. Provide copies if necessary.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

How the police behave in such cases

In most instances, the police will not intervene in such matters. This is considered a consumer dispute, which is a civil matter, not a criminal one. If you approach a police station, they will rightfully direct you to file a complaint with the Consumer Commission. Police involvement would only be warranted if there were elements of criminal fraud or cheating, for instance, under Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS), which is difficult to prove in such retail policy disputes. The correct and most effective forum for redressal is the Consumer Commission.

FAQs people normally have

Is it legal for a store to have a policy of refunding the current price instead of the purchase price?
No, such a policy is generally considered an unfair trade practice under the Consumer Protection Act, 2019. The contract between the buyer and seller is for the price paid, and the refund should reflect that amount.

Can I file a complaint without a lawyer?
Yes, a consumer can file a complaint on their own. The procedure is designed to be consumer-friendly. However, having a lawyer represent you can ensure that your case is presented professionally and all legal nuances are covered, increasing your chances of a favorable outcome.

What can I claim as compensation?
You can claim the differential refund amount, compensation for the mental agony and harassment caused, and the costs incurred in filing the complaint (litigation costs).

What evidence is required?

Strong evidence is the backbone of a successful consumer complaint. You will need:

• The original bill or invoice showing the price you paid for the item.
• Proof of payment, such as a bank or credit card statement.
• The refund receipt or bank credit message showing the lower amount that was refunded.
• A screenshot or copy of the retailer’s return policy that was applicable at the time of your purchase.
• Copies of all emails, letters, or records of communication you have had with the company regarding the issue.

How long will the investigation take?

The Consumer Protection Act, 2019, mandates a speedy resolution process. Once your complaint is admitted, the Commission will send a notice to the opposite party. Ideally, a case should be disposed of within 3 to 5 months if no complex analysis or expert evidence is required. However, the actual timeline can vary depending on the workload of the specific Commission and the complexities of the case. The process is significantly faster than traditional civil courts.

Advocate Sudhir Rao, Supreme Court of India