Franchaise Owners Association vs. State Of Kerala
Held
The High Court noted the recent establishment of a new 'Monitoring Mechanism to Monitor or Supervise the Activities of Direct Selling Entities and Direct Sellers, 2022'. It directed the petitioner to file a fresh complaint with this newly constituted authority, which is to consider it expeditiously within two months, without expressing any opinion on the merits of the case.
Facts
An association of franchisees alleged they were defrauded by a direct selling entity operating an illegal pyramid scheme, contrary to Direct Selling Guidelines. They filed a complaint with state authorities, but no action was taken, leading to this writ petition seeking directions against the alleged fraudulent entity and the state respondents.
Key Issues
Whether the state authorities failed to act on a complaint regarding an alleged illegal pyramid scheme operating under the guise of direct selling, and if the matter should be referred to a newly constituted monitoring authority.
Sections Cited
Consumer Protection Act 2019, Consumer Protection (Direct Selling) Rules 2021
AI-generated summary — verify with the full judgment below
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN TUESDAY, THE 26TH DAY OF JULY 2022 / 4TH SRAVANA, 1944 WP(C) NO. 2091 OF 2022 PETITIONER: FRANCHAISE OWNERS ASSOCIATION REG NO. RKM/TC/217/2021, G571, 11TH CROSS ROAD, PANAMPILLY NAGAR, KOCHI - 682036REPRESENTED BY ITS SECRETARY, SRI. VIJU M. VARGHESE, S/O M.L. VARGHESE, AGED 48 YEARS, RESIDING AT MUNDANCHERRY, PANAIKULAM P.O., ALANGADU VILLAGE, KARUMALLOOR, PANAIKULAM, ERNAKULAM - 683511., PIN - 683511 BY ADVS. NIRMAL V NAIR M.ANEESH RAHUL S.NATH RESPONDENTS: 1 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF CONSUMER AFFAIRS, SECRETARIAT, THIRUVANANTHAPURAM - 695001. , PIN - 695001 2 NODAL OFFICER AND CONVENER STATE MONITORING AUTHORITY FOR DIRECT SELLING & MLM C/O. THE DIRECTOR OF FOOD SUPPLIES AND CONSUMER AFFAIRS, PUBLIC OFFICE, VIKAS BHAVAN, THIRUVANANTHAPURAM - 33., PIN - 695033 3 THE SECRETARY TO GOVERNMENT DEPARTMENT OF FINANCE, SECRETARIAT, THIRUVANANTHAPURAM - 695001., PIN - 695001 4 THE SECRETARY TO GOVERNMENT DEPARTMENT OF LAW, SECRETARIAT,
W.P.(C)No.2091/2022 2 THIRUVANANTHAPURAM - 695001., PIN - 695001 5 THE SECRETARY TO GOVERNMENT TAXES DEPARTM
The judgment continues below.
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