Tuesday 24 April 2012

Conditions not signed by the consumer are not binding

The first duty of a consumer is to get a receipt whenever he buys something, either goods or services. If there is a defect in the goods purchased or a deficiency in the service obtained, he can approach the consumer courts to get compensation, provided that he has the receipt. To be a consumer under the Consumer Protection Act, one has to have paid a consideration for the goods or services he has received and the receipt is the proof that he has paid.

But most receipts have conditions printed on them (often in small print). The receipt given by a courier service says that the liability of the company is limited to Rs. 100 if the mail is damaged or lost. Similarly airline tickets limit the liability of the airline company in case of a mishap.The receipt given bu the dry cleaning shop says that the shop's liability is Rs. 100 or Rs. 200 per piece of clothing if it is damaged. The receipts given by many shops still carry the warning "Goods once sold will not be taken back".

Are these conditions on the receipts which limit the liability of the vendor binding? If a silk saree which you have given for dry cleaning gets damaged, do you have to be satisfied with the Rs. 100 or 200 specified on the receipt as the liability of the dry cleaner. If you send an important document by courier and they lose it, is Rs. 100 all you are going to get? MGP has been getting a lot of queries on this issue.

In a judgment favourable to the consumers, the National Commission has held (III (1999) CPJ 23 (NC)) that conditions mentioned in the receipt but not signed by the consumer are not binding on the consumer. But in a partial reversal of this order, the National Commission held three years later (II (2002) CPJ 24 (NC)) that conditions which have not been signed by the consumer, but which have been brought to his notice are binding. Luckily for the consumer, three years still later, the National Commission has gone back to its original position and ruled (IV (2005) CPJ 207 (NC)) that terms and conditions on the receipt are binding only if they are signed by the customer.

The National Commission has also held that contractual terms which have not been individually negotiated shall be regarded as unfair (and hence null and void) if, contrary to the requirements of good faith, they cause a significant imbalance in the rights and obligations arising under the contract. So blanket conditions such as "The carrier is not liable for damaged goods" found on the receipts of many lorry services, "We are not responsible if clothes are damaged" found on receipts of several dry cleaners, "Goods once sold will not be taken back" found on the receipts of many shops which seek to nullify the liability of the vendor of goods or services are not acceptable in the eyes of the law if they have not been individually negotiated (even if they have been signed by the consumer) since the conditions are far too one-sided.

In fact, the Department of Consumer Affairs in Delhi has issued a D.O. (D.O. No. 11(11)99- CPU/1647 dated 22-12-99) prohibiting the printing of the condition "Goods once sold will not be taken back" on receipts. Unfortunately, a large number of businesses are still flouting the D.O. and many consumers who are not aware of the law are being cheated. If you are dissatisfied with any merchandise you have purchased, you can return it and get a refund of your money even though the receipt says that goods once sold will not be taken back. If the shop refuses to take it back, file a complaint before the consumer forum and you will get your money back.

P.M. Bhat, Mysore Grahakara Parishat