Underweight Product – Nestle Instant Coffee Sachets

Background:

Under the Consumer Protection Act, 1986, a complaint includes any allegation that goods purchased suffer from defects, and a defect includes any fault, imperfection, or shortcoming in quality, quantity, purity, or standard which the manufacturer or trader is required to maintain by law.

In pursuit of its objective to protect consumer rights and promote fair trade practices, CERC (Consumer Education and Research Centre) purchased samples of instant coffee sachets of leading brands such as Nestlé India and Bru from the open market. These samples were tested in CERC’s laboratory to verify the quality and quantity declared on the packaging.

Findings of the CERC Laboratory:

While the quality of the coffee was found satisfactory, the quantity was consistently underweight. Sachets marked as “50 grams” were found to weigh only 46–47 grams in 9 out of 10 samples tested.

This meant that each consumer was effectively paying ₹2 to ₹3 more per sachet than the value received. On a larger scale, considering Nestle’s total production during a three-year period, this discrepancy translated to an undue enrichment of approximately ₹60 lakh for the company.

Legal Proceedings:

CERC brought the matter to the attention of Nestlé India, which disputed the findings, citing the permissible margin of error of 3% under the Weights and Measures Act.
Unconvinced, CERC filed a complaint before the Monopolies and Restrictive Trade Practices Commission (MRTPC), alleging unfair trade practice and deceptive packaging.

• The MRTPC dismissed the complaint on the ground that the matter did not fall under its jurisdiction.
• CERC appealed to the Hon’ble Supreme Court of India, which upheld the MRTPC’s decision, though it left open the availability of other remedies under different enactments.

Subsequent Developments:

Before filing the case with the MRTPC, CERC purchased another batch of Nestlé sachets from the market. These newer sachets, which offered an additional 15 grams free, were found to contain full or slightly higher weights.

This correction clearly indicated that Nestlé India had rectified the defect following the public exposure and agitation initiated by CERC. Although the issue was corrected, past consumer losses remained uncompensated, prompting CERC to continue pursuing legal remedy.

Proceedings Before the National Consumer Disputes Redressal Commission:

CERC subsequently filed a complaint under the Consumer Protection Act before the National Consumer Disputes Redressal Commission (NCDRC), emphasizing that:

• The Weights and Measures Act only provides for penal consequences (fine or imprisonment) for manufacturers.
• CERC’s concern was consumer restitution—recovery of the excess money unjustly collected due to short-weight packs.

The NCDRC admitted the petition, and the case remains pending adjudication.

Claim and Financial Implications:

Based on Nestlé’s own balance sheets and production data over three years, CERC estimated the total undue enrichment at ₹50 crore, representing the excess amount collected from consumers.

Nestlé, in its defence, disclosed manufacturing around 1.5 lakh sachets of 50 gm coffee daily, which translated to a daily undue enrichment of approximately ₹31 crore by their own admission—a figure CERC disputed, maintaining its higher estimate.

CERC sought that the amount of ₹50 crore be deposited into a Consumer Welfare Fund, to be utilized for consumer education and awareness initiatives related to packaged goods and fair trade practices.

Significance of the Case:

This case highlights CERC’s relentless pursuit of truth in labeling, fair packaging, and consumer justice. It underscores that even minor discrepancies in weight or measure—when multiplied across millions of sales—can lead to mass-scale consumer exploitation.

The matter also set an important precedent in distinguishing between penal liability under regulatory laws and compensatory remedies under consumer protection law, emphasizing that consumer restitution must accompany legal compliance.