SC orders Consumer Affairs Ministry to explain drop in consumer complaints within 2 weeks

New Delhi: The Supreme Court has directed the Consumer Affairs Ministry to submit an affidavit addressing the significant drop in consumer complaints. 

It was revealed to the Court that a Memorandum of Understanding (MoU) between the Union Ministry of Consumer Affairs and the Advertising Standard Council of India (ASCI), which started in 2018, ended in 2020. Following the termination of this MoU, consumer complaints drastically decreased from 2,573 to approximately 132. 

The Court noted that this decline is likely due to the Ministry's inadequate publicity of its existing complaint resolution mechanism.

The Court expressed concern over the sharp decline in complaints and stressed the need to investigate the reasons behind it. 

As per the Bar and Bench report, consequently, the Consumer Affairs Ministry has been given two weeks to file an affidavit on this matter. 

The Court remarked that the reduced number of complaints highlights the Ministry's failure to effectively promote its grievance redressal portal, emphasising the necessity for the Ministry to thoroughly examine and address this issue. 

The Court was hearing a case brought by the Indian Medical Association (IMA) against Patanjali Ayurved and its promoters, Baba Ramdev and Acharya Balkrishna, accusing them of publishing misleading advertisements that target allopathic medicine.

The Supreme Court suggested that the AYUSH Ministry create a centralised dashboard to track and publicise the progress of complaints about misleading advertisements for medicinal and healthcare products. 

Justices Hima Kohli and Sandeep Mehta noted difficulties in monitoring these complaints, especially when forwarded between states, which hampers prosecutions under the Drugs and Cosmetics Act, 1940.

As per the Bar and Bench report, the dashboard would address these issues by making data on complaints and actions taken publicly available, aiding prosecution efforts. The suggestion arose during a case involving Patanjali Ayurved and its promoters, accused of misleading advertising. 

The case has expanded to address broader issues, including misleading ads by other companies and the role of celebrity endorsers.

The Court also highlighted the need for prior approval of ads to prevent misbranding and for a streamlined approach to handling consumer complaints.