Xerion Retail to pay a compensation of Rs 10,000 to a customer for excess charging

The District Consumer Disputes Redressal Forum, Mohali, directed an online company Xerion Retail, of Gurugram to refund the price of shoes i.e. Rs 321 -- the additional amount they charged that constituted unfair trade practice -- and to pay a compensation of Rs 10,000 for mental agony, harassment, and costs of litigation to Gurmeet Kaur, a resident of Phase IV in Mohali.

On 8 July last year, Gurmeet placed an online order on the site ‘Jabong.com’ for purchase of one pair of Air Zoom Vomero 11 navy blue running shoes from Xerion Retail by paying Rs 6,753. The shoes were delivered to Kaur at her residence, and the maximum retail price as printed on the box of shoes was Rs 12,995, inclusive of all taxes. Xerion Retail had given a discount of 45% on the MRP. Thus, after discount, the price of shoes came to Rs7,147. Another special discount of 10% of Rs 714 was also offered to Kaur on the discounted price, bringing the price of shoes further down to Rs6,432.

However, Xerion Retail, while issuing the sale invoice, charged Rs 321 on the price of Rs 6,432, and charged a total amount of Rs 6,753 from Kaur. On receipt of the shoes, Kaur on 25 July sent an e-mail to Jabong, requesting it to refund the amount of Rs 321 charged on account of taxes, as the MRP was inclusive of all taxes.

As per the India Post Tracking report, the notice sent to Xerion Retail was delivered to it on 1 October. However, none appeared for it, and Xerion Retail was proceeded against ex-parte on 9 November. The authorized representative of Kaur argued that the price tag showed that the price of shoes was inclusive of all taxes. However, Xerion Retail, at the time of issuance of invoice, again charged taxes to the tune of Rs321 on the discounted price, and this act on the part of the Xerion Retail amounts to unfair trade practice and deficiency in service.

After hearing the arguments of Kaur, as Xerion Retail was absent during the proceedings the counter forum, said: "We find that charging of taxes on the discounted price by Xerion Retail is an unfair trade practice and deficiency in service. Xerion Retail was directed to refund Rs321 i.e. excess charges of taxes, and to pay her compensation of Rs10,000 for mental agony, harassment and costs of litigation."