{"id":233417,"date":"2020-08-05T18:00:44","date_gmt":"2020-08-05T12:30:44","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=233417"},"modified":"2020-08-05T17:41:21","modified_gmt":"2020-08-05T12:11:21","slug":"ncdrc-mc-donalds-promotional-scheme-assuring-a-prize-on-every-purchase-declared-as-an-unfair-trade-practice-consumer-compensated-with-rs-30000","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/05\/ncdrc-mc-donalds-promotional-scheme-assuring-a-prize-on-every-purchase-declared-as-an-unfair-trade-practice-consumer-compensated-with-rs-30000\/","title":{"rendered":"NCDRC | Mc Donald’s promotional scheme assuring a prize on every purchase declared as an unfair trade practice; Consumer compensated with Rs 30,000"},"content":{"rendered":"

National Consumer Disputes Redressal Commission (NCDRC):\u00a0<\/strong>Prem Narain (Presiding Member) upheld the State Commission’s order partly and confirmed that the promotional scheme by Mc Donalds — \u2018Mc Donald\u2019s Mein Khao Har Bar Prize Le Jao\u2019<\/em><\/span>\u00a0 was an unfair trade practice.<\/span><\/p>\n

Present revision petition was filed against the Delhi State Consumer Disputes Redressal Commission’s decision.<\/p>\n

Facts<\/span><\/h3>\n

Complainant in the year 2005 had participated in OP’s widely published scheme \u2018Mc Donald\u2019s Mein Khao Har Bar Prize Le Jao\u2019<\/em><\/span> by placing two separate orders worth Rs 81.<\/span><\/p>\n

It was alleged that the complainant did not find any terms and conditions on the notice board of OP, instead found a leaflet of another scheme \u2018McDonald\u2019s Ghar Bulao Sab Lucky Ban Jao !\u2019.<\/span><\/em><\/span><\/p>\n

Further, on OP’s manager’s advice, complainant had sent two SMS on 8888 giving the coupon nos., for which Rs 3 per SMS were charged.\u00a0<\/span><\/p>\n

In view of the above stated facts, complainant alleged that OP indulged into unfair trade practices by not giving the assured prizes as per the scheme.<\/p>\n

\n
\n
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Moreover, the details of the entire scheme with terms and conditions and the result of the winners were also concealed from the participating customers, therefore, the complainant filed a consumer complaint before the District Forum praying to declare the scheme as unfair trade practice and a direction was sought against OP to disclose the entire scheme, winners of the prizes.<\/p>\n

Refund of the amount collected in lieu of premium SMS charges levied as well as refund of Rs 81 and Rs 6 for SMS with cost and compensation was also demanded.<\/p>\n

District Consumer Disputes Redressal Forum had awarded Rs 10,000 as compensation and Rs 2000 as cost to the complainant.<\/p>\n

Aggrieved by the above Order, complainant filed the present revision petition.<\/p>\n

Decision<\/span><\/h3>\n

Bench stated that the scheme was run by the OP to promote the sale of products of the OP by giving various offers to consumers of the OP.<\/p>\n

Supreme Court decision of Lourdes Society Snehanjali Girls Hostel v. H&R Johnson (India) Ltd<\/em>. , (2016) 8 SCC 286<\/a>, was also cited, wherein it was held that,<\/span><\/p>\n

\n
\n
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“The National Commission has to exercise the jurisdiction vested in it only if the State Commission or the District Forum has either failed to exercise their jurisdiction or exercised when the same was not vested in them or exceeded their jurisdiction by acting illegally or with material irregularity. In the instant case, the National Commission has certainly exceeded its jurisdiction by setting aside the concurrent finding of fact recorded in the order passed by the State Commission which is based upon valid and cogent reasons.\u201d<\/span><\/em><\/p>\n

Complainant failed to file any proof with regard to the collection of SMS charges by the OP or OP’s agreement with the Telecom Company\/Service provider on sharing of SMS charges.<\/p>\n

\n
\n
\n
\n

“It can only be presumed that the OP facilitating income of the Telecom Company\/ service provider by encouraging the customers of Telecom company\/ service provider to make use of the services of commercial SMS, will definitely get some benefits out of the increased earnings of the Telecom company\/ service provider.”<\/p>\n<\/blockquote>\n

However, the Commission stated that without any proof of the above stated, State Commission’s award to the complainant cannot be sustained.<\/p>\n

Another observation in view of the facts stated, OP’s scheme was unfair trade practice as established by the fora below and hence complainant and other customers subjected to the same scheme need relief.<\/p>\n

While partly allowing the revision petition, Commission allowed compensation of Rs 30,000 to be paid to the complainant and an amount of Rs 70,000 to be deposited with Consumer Welfare Fund. [Connaught Plaza Restaurants Ltd. v. Kapil Mitra, Revision Petition No. 2731 of 2016, decided on 04-08-2020]<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

National Consumer Disputes Redressal Commission (NCDRC):\u00a0Prem Narain (Presiding Member) upheld the State Commission’s order partly and confirmed that the promotional scheme by <\/p>\n","protected":false},"author":8808,"featured_media":199533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[2728,42921,42924,3095,42923,42922,34981],"class_list":["post-233417","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-compensation","tag-consumer-welfare-fund","tag-mc-donalds","tag-NCDRC","tag-promotional-scheme","tag-sms-charges","tag-unfair-trade-practice"],"yoast_head":"\nNCDRC | Mc Donald's promotional scheme assuring a prize on every purchase declared as an unfair trade practice; Consumer compensated with Rs 30,000 | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/05\/ncdrc-mc-donalds-promotional-scheme-assuring-a-prize-on-every-purchase-declared-as-an-unfair-trade-practice-consumer-compensated-with-rs-30000\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCDRC | Mc Donald's promotional scheme assuring a prize on every purchase declared as an unfair trade practice; 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says promotional trailers not binding offers","author":"Apoorva","date":"April 23, 2024","format":false,"excerpt":"\u201cPromotional trailers are unilateral and are only meant to encourage a viewer to purchase the ticket to the movie, which is an independent transaction and contract from the promotional trailer. A promotional trailer by itself is not an offer and neither intends to nor can create a contractual relationship.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"promotional trailer","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/promotional-trailer.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/promotional-trailer.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/promotional-trailer.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/promotional-trailer.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":241218,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/24\/consumer-protection-act-2019-a-primer\/","url_meta":{"origin":233417,"position":1},"title":"Consumer Protection Act, 2019: A Primer","author":"Editor","date":"December 24, 2020","format":false,"excerpt":"Suchita Shukla\u2020","rel":"","context":"In "Law made Easy"","block_context":{"text":"Law made Easy","link":"https:\/\/www.scconline.com\/blog\/post\/category\/law-made-easy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/240_F_370158620_1zUOBgs9xrY6WoZAL8Cg6AVEssJsFEC7-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/240_F_370158620_1zUOBgs9xrY6WoZAL8Cg6AVEssJsFEC7-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/240_F_370158620_1zUOBgs9xrY6WoZAL8Cg6AVEssJsFEC7-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/240_F_370158620_1zUOBgs9xrY6WoZAL8Cg6AVEssJsFEC7-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/240_F_370158620_1zUOBgs9xrY6WoZAL8Cg6AVEssJsFEC7-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":225908,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/02\/19\/ncdrc-inclusion-of-a-song-in-promo-of-a-film-but-excluding-it-while-exhibiting-the-movie-amounts-to-unfair-trade-practice-deficiency\/","url_meta":{"origin":233417,"position":2},"title":"NCDRC | Inclusion of a song in promo of a film but excluding it while exhibiting the movie amounts to \u2013 Unfair Trade Practice & Deficiency","author":"Bhumika Indulia","date":"February 19, 2020","format":false,"excerpt":"National Consumer Redressal Commission (NCDRC): Justice V.K. Jain (Presiding Member) while dismissing the revision petition filed by Yash Raj Films with regard to allegations of unfair trade practice & deficiency being placed upon them, stated that, \u201cI Fail to understand the logic behind including a song in the promo but\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":247262,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/04\/17\/unfair-trade-practice\/","url_meta":{"origin":233417,"position":3},"title":"NCDRC | Selling a second-hand car, in place of a new car, after accepting full consideration price for a new car, inter alia constitutes \u2018unfair trade practice\u2019 under S. 2(1)(r) of Consumer Protection Act","author":"Bhumika Indulia","date":"April 17, 2021","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): Dinesh Singh, Presiding Member, held that, \"...selling a second-hand car, in place of a new car, after accepting the full consideration price for a new car, inter alia constitutes \u2018unfair trade practice\u2019 under Section 2(1)(r) of the Consumer Protection Act.\" Revision Petition was instituted\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":106441,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/02\/14\/ncdrc-condemns-outlets-for-under-sized-font-of-terms-and-conditions-in-advertisements-holds-no-extra-vat-can-be-charged-on-discounted-items\/","url_meta":{"origin":233417,"position":4},"title":"NCDRC condemns outlets for under-sized font of terms and conditions in advertisements, holds no extra VAT can be charged on discounted items","author":"Saba","date":"February 14, 2017","format":false,"excerpt":"National Consumers Disputes Redressal Commission :\u00a0The\u00a0District Forums in Chandigarh held that there was deficiency in service on the part of the petitioners in charging VAT from the complainants on the \u2018FLAT\u2019 discounted process of the said products advertised by them. Appeal to the decision of all the Fora was before\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":241310,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/25\/2020-wrap-up-flashback-of-stories-on-consumer-cases\/","url_meta":{"origin":233417,"position":5},"title":"2020 Wrap Up — Flashback of Stories on Consumer Cases","author":"Bhumika Indulia","date":"December 25, 2020","format":false,"excerpt":"Since 2020 is now winding down, we switch on our flashback mode and note that a lot of changes in the name of \u2018new normal\u2019 appeared. Pandemic impacted everything, be it the normal grocery shopping outlets or the justice delivery system mechanisms. So reflecting back at some of our best\u2026","rel":"","context":"In "Legal RoundUp"","block_context":{"text":"Legal RoundUp","link":"https:\/\/www.scconline.com\/blog\/post\/category\/columns-for-roundup\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/FLASH-1-2.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/FLASH-1-2.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/FLASH-1-2.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/FLASH-1-2.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/12\/FLASH-1-2.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/233417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=233417"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/233417\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/199533"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=233417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=233417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=233417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}