Peshawar Consumer Court Orders Khaadi to Refund Rs30 Bag Charge, Pay Rs50,000
A Peshawar Consumer Court has reportedly ruled against fashion retailer Khaadi over a Rs30 charge for a shopping bag, directing the company to refund the amount to the customer and pay Rs25,000 in compensation.
According to details of the case, the court also ordered Khaadi to pay an additional Rs25,000 penalty to the government. The court questioned the practice of charging customers for shopping bags carrying the retailer’s own branding, noting that such bags can also function as a form of advertising and promotion for the business.
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The court’s observations reportedly centered on whether retailers can legally recover the cost of branded shopping bags from customers when those bags simultaneously promote the retailer’s brand.
The case was decided under the Khyber Pakhtunkhwa Consumers Protection Act, 1997, which provides consumers with mechanisms to lodge complaints against businesses and empowers Consumer Courts to award compensation in cases involving losses, violations or unfair trade practices. The law also contains requirements relating to price display and the issuance of receipts.
Consumer Courts have the authority under the legislation to order businesses to refund amounts paid by consumers and provide compensation where the circumstances of a case warrant such relief.
The ruling has drawn attention to the broader issue of shopping bag charges in Pakistan, where many retailers separately charge customers for carrier bags. The legality of such charges, however, can depend on the relevant provincial consumer-protection and environmental regulations, as well as the specific circumstances of each transaction.
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Khyber Pakhtunkhwa also has regulations governing shopping and carrier bags. In 2020, the provincial Environmental Protection Agency issued a notification imposing a temporary province-wide ban on certain oxo-biodegradable shopping and carrier bags, subject to specified exceptions.
