New Delhi: The consumer affairs department on Tuesday filed a complaint against food major Nestle India with the National Consumer Disputes Redressal Commission (NCDRC) as on they say, millions of consumers.
They are seeking damages of Rs 640 crore alleging that the company sold unsafe and hazardous products – Maggi noodles – to millions of consumers endangering their health. It has also alleged the company indulged in misleading and deceptive advertisements and also resorted to unfair trade practices to earn “unjust profits”.
They are seeking a direction to Nestle India to deposit the amount in Consumer Welfare Fund as permissible under the Consumer Protection Act. Moreover, it has sought imposing 18% interest on the damage claimed till the actual payment is made by the firm. The department’s complaint also mentioned that the claim for damage could increase as and when more disclosures and findings about the “unsafe” products surface.
In its prayer, the department has said, “The punitive/ exemplary damages are significant in the present case and are intended to reform and deter the opponent and other food companies from engaging in conduct similar” to that of Nestle so that the common public does not suffer and is not helpless to protect its health and well being. The complaint was vetted by additional solicitor general Sanjay Jain.
Alleging that by its unfair trade practices as well as defective and hazardous products it has caused injury to millions of consumers, the department has sought “class action” against the company.
Justifying the steep damage claimed, the department has referred to studies to show how the popular snack posed greater threat to children and pregnant women due to high level of lead and MSG contents. It has referred to advertisements by the company promoting the products stating “Health is enjoyable” and with the concept of “taste bhi, health bhi” despite containing lead.
“The opponent’s trade practices for the purpose of promoting the sale of its products, however, were executed through statements both written and by visible representations, including targeted advertising, to represent to the Indian consumers, attributes of the products, that were misleading and deceptive,” the complaint said.
Nestle responds cautiously
In a statement Nestle India said, “We are yet to receive official notice about the complaint filed before the NCDRC. Our current knowledge on this issue is only basis media reports. We shall be able to provide substantive response after we receive the official papers. We thank you for your understanding.”
