Have Travel Firms Refunded Rs 1,454 Crore to Flyers for Cancelled Flights?
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Synopsis
In a significant move, travel companies have refunded a staggering Rs 1,454 crore to consumers for cancelled flights during the Covid-19 lockdown. This decision, mandated by the CCPA, has prompted measures to protect consumer rights and ensure transparency in the travel industry.
Key Takeaways
- Rs 1,454 crore refunded to consumers for cancelled flights.
- CCPA mandates clear refund information on websites.
- Delisting of unsafe products from e-commerce platforms.
- Strict penalties for misleading advertisements.
- Importance of consumer rights in the marketplace.
New Delhi, Aug 19 (NationPress) Travel companies have reimbursed Rs 1,454 crore to passengers for cancelled flights resulting from the Covid-19 lockdown, as reported to the Parliament on Tuesday by the Minister of State for Consumer Affairs, Food, and Public Distribution, B.L. Verma.
The Central Consumer Protection Authority (CCPA) has instructed these companies to ensure their websites provide clear guidelines and updates regarding refund claims connected to cancelled tickets.
Following the CCPA's intervention, an e-commerce platform ceased the practice of automatically adding Rs 1 per ticket for charitable contributions in a pre-ticked format, which was considered a form of forced consent dark pattern. Additionally, an airline adjusted its method of offering insurance during ticket purchases, which was previously criticized as a form of confirm shaming dark pattern, the minister elaborated.
Moreover, the CCPA has ordered the delisting of 13,118 car seat belt alarm stopper clips from major e-commerce sites due to violations of consumer rights and unfair trade practices under the Consumer Protection Act, 2019. These products posed safety risks by silencing alarm beeps when seat belts were not worn.
Actions have also been taken against the sale of domestic pressure cookers that fail to comply with mandatory BIS standards on e-commerce platforms.
Regarding endorsements, the guidelines clarify that they encompass individuals, groups, or institutions that promote goods or services in advertisements. Any endorsement must reflect the genuine opinion of the endorser and be based on adequate information, avoiding any deceptive practices.
The guidelines also state that if Indian professionals are legally barred from endorsing specific advertisements, foreign professionals in the same field are equally prohibited. Violations will incur strict penalties.
The minister indicated that under the Consumer Protection Act, 2019, penalties for false or misleading advertisements can reach Rs 10 lakh for manufacturers or endorsers, escalating to Rs 50 lakh for repeated offences.
The CCPA has already taken action against various entities, including e-commerce platforms, for infringing on consumer rights through misleading advertisements and unfair trade practices. The authority has issued numerous directives to protect consumers, resulting in a total penalty recovery of Rs 1,08,85,000 so far.
Point of View
It is evident that the actions taken by the CCPA are vital for safeguarding consumer rights in India. The significant refunds and measures imposed on travel firms reflect a necessary commitment to transparency and fairness in the marketplace. These steps not only restore trust among consumers but also set a precedent for accountability in the travel industry.
NationPress
19/08/2025
Frequently Asked Questions
What amount have travel companies refunded?
Travel companies have refunded Rs 1,454 crore to consumers for cancelled flights.
What prompted the refunds?
The refunds were mandated by the Central Consumer Protection Authority due to cancellations caused by the Covid-19 lockdown.
What actions has the CCPA taken?
The CCPA has enforced refunds, mandated companies to update refund policies, and delisted unsafe products from e-commerce platforms.
What penalties are in place for misleading advertisements?
Penalties for misleading advertisements can reach Rs 10 lakh for initial violations, escalating to Rs 50 lakh for repeated offences.
What is the significance of the CCPA's actions?
The CCPA's actions are crucial for protecting consumer rights and ensuring accountability in the travel and e-commerce sectors.
