Manufacturer and Retailer Fined Rs 10 Lakh for Overcharging Cigarettes

Manufacturer, Retailer Fined Rs 10 Lakh for Overcharging on Cigarettes

NEW DELHI: The district consumer commission in Aligarh has imposed a penalty of Rs 10 lakh on a cigarette manufacturer and a local retailer for overcharging a customer. The amount is to be deposited in the consumer welfare fund following a complaint that the retailer sold a packet of Classic brand cigarettes for Rs 20 above its maximum retail price (MRP).

The incident occurred on January 29, 2026, when the complainant purchased a cigarette packet with an MRP of Rs 340 but was charged Rs 360 by the retailer. Despite objecting, the customer was forced to pay the additional Rs 20 through an online transaction. He later filed a complaint against both the retailer and the manufacturer, alleging that selling a product above its printed MRP constituted an unfair trade practice.

In his complaint, the customer sought a refund of Rs 20 with 24 percent annual interest, Rs 10 lakh as compensation for harassment, a Rs 25 lakh penalty under the Consumer Protection Act, 2019, and Rs 75,000 for legal fees. While the retailer did not respond to the case, the manufacturer denied any responsibility, claiming it neither sold directly to the complainant nor authorised the retailer, and argued there was no proof of the overcharge.

The commission, however, found the evidence submitted by the complainant — including an online payment record and a photo of the cigarette packet — sufficient to prove the overcharge. It noted that the retailer had not refuted the allegations and held the manufacturer accountable, stating that the retailer acted as its agent or subagent by selling its product.

Describing the overcharging as black marketing and an unfair trade practice, the commission ruled that both the retailer and the manufacturer were liable for the misconduct. It ordered them to reimburse the complainant Rs 20 with 18 percent annual interest from January 29, 2026, along with Rs 5,000 as compensation and Rs 5,000 for litigation costs. Additionally, the commission directed the two parties to jointly deposit Rs 10 lakh in the consumer welfare fund under Section 39(1)(k) of the Consumer Protection Act, 2019.

The commission granted 45 days for compliance, warning that failure to adhere to the order could result in prosecution.