Amway guilty of misbranding, asked not to sell two products

New Delhi, Nov 8 (PTI) Global direct selling major Amwayhas been asked to remove two of its products from sales by theapex counsumer commission whi...
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New Delhi, Nov 8 (PTI) Global direct selling major Amwayhas been asked to remove two of its products from sales by theapex counsumer commission which also slapped a fine of Rs onelakh on it for wrongly branding its products.

The National Consumer Disputes Redressal Commission(NCDRC) asked Amway India Enterprises Pvt Ltd to remove AmwayMadrid Safed Musli (Apple) and Kohinoor Ginger Garlic Pastefrom the market within a period of six weeks.

"As these products have been sold to certain consumersand they have suffered on account of the unfair trade practiceadopted by the petitioner in respect of these two products, Ideem it appropriate to set aside the order of the StateCommission setting aside the order of the District Forum forawarding exemplary damages of Rs 1,00,000 to be deposited withthe Consumer Welfare Fund mentioned in the order," NCDRCPresiding Member Prem Narain said.

"The petitioner company shall also issue the correctiveadvertisement as ordered by the District Forum. If thepetitioner company wants to reintroduce these products, thesame may be introduced after getting the approval from theFood Safety and Standards Authority of India," the NCDRC said.

According to the petition filed by Consumer GuidanceSociety, an Andhra Pradesh-based NGO, three items were foundto be misbranded or adulterated after samples of products ofthe firm were tested by the Chief Public Analyst of State FoodTesting Laboratory.

The district forum in 2007 had asked the company toremove two out of the three adultrated/misbranded productsfrom market and directed it not to indulge in such unfairtrade practices in future.

It had also imposed Rs one lakh as exemplary damages andasked the firm to deposit the amount in the Consumer WelfareFund.

The state commission had, however, partly allowed theappeal of the firm by asking it not to pay the damages on theground that the NGO did not suffer any loss.

However, the apex consumer commission considered this asa material irregularity and said the State Commission hasperhaps mistook this cost to have been awarded to therespondent which is not correct. PTI RRT AGDV.

This is unedited, unformatted feed from the Press Trust of India wire.

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