The Peshawar Consumer Court has ordered Khaadi to pay Rs 25,000 in damages to a consumer, in addition to refunding the Rs 30 charged for a shopping bag. The court also imposed a further fine of Rs 25,000 on the company, payable to the government.
“Bags bearing your logo serve your own promotional purposes. How can you pass that cost on to the consumer? This is a violation of the law,” the court observed.
Court has ordered fashion retailer Khaadi to refund Rs. 30 charged to a customer for a shopping bag and pay Rs. 25,000 in compensation. The court also directed the company to deposit an additional Rs. 25,000 as a penalty with the government.
The case raised questions about the practice of charging customers for shopping bags bearing a retailer’s own branding. The court observed that such bags can also serve as promotional material for the business, prompting scrutiny of whether their cost should be passed on to consumers.
The ruling was issued under the Khyber Pakhtunkhwa Consumers Protection Act, 1997, which provides a legal framework for consumer complaints and empowers Consumer Courts to award compensation for losses resulting from violations and unfair trade practices.
The legislation also requires businesses to display prices and issue receipts to customers. Consumer Courts have the authority to order businesses to refund amounts paid by consumers and provide compensation where warranted.
The case brings renewed attention to consumer rights in Pakistan, particularly the widespread practice of charging separately for shopping bags. However, the legality of such charges depends on the relevant provincial consumer protection and environmental laws, as well as the circumstances of each transaction.
Khyber Pakhtunkhwa has also introduced 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.