Action against Maruti for "misleading" Ciaz customers

Maruti Suzuki, India's largest carmaker in terms of sales, could face legal action for taking orders for the Ciaz sedan without displaying the car or revealing its specifications.

The consumer affairs ministry is considering taking this step after a former railway minister claimed that he received several complaints from the public about the company accepting pre-launch bookings. The ministry has written to Maruti Suzuki calling it an unfair trade practice and asked why it should not initiate action against the company.

Through the letter, which is addressed to the Chairman and Managing Director of Maruti Suzuki, the ministry has conveyed to the company that the Consumer Protection Act provides a consumer the right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices.  The letter further states that in the modern days of total transparency, the manner in which the sale of this new car is being promoted amounted to misleading consumers.

Maruti Suzuki had responded to the former railway minister with a statement saying that customers could refer newspaper reviews before booking the car, which the consumer affairs ministry has found unacceptable. The company has now been asked to provide complete details of the pre-launch booking programme and explain why action under the Consumer Protection Act, 1986, such as filing a suit by the central government should not be taken.

Automobile companies accept a token amount, which is adjusted against the final price of the vehicle. In case a customer wishes to cancel his booking, the full amount is refunded to him. Various manufacturers including Honda, Hyundai, Mahindra and Tata have adopted this strategy. Maruti might not be in much trouble since the complainant will have to prove that this is not a normal practice within the trade and the company is unfairly treating its potential customers.

Source: Economic Times