Zudio has been ordered to pay Rs 30,000 and stop charging customers for carry bags after a Karnataka consumer commission ruled that the retail chain's practice of billing shoppers Rs 10 for a paper bag amounts to unfair trade practice and a violation of the Sale of Goods Act, 1930.
The order was passed on 10 August 2026 by the District Consumer Disputes Redressal Commission, Davangere, in a complaint filed by a customer who was charged Rs 10 for a carry bag after making a purchase at a Zudio store.
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Can retailers legally charge for carry bags in India?
The commission's ruling rested on a straightforward reading of the Sale of Goods Act, 1930. Under Section 36 of the Act, the duty of putting goods into a deliverable state lies with the seller. The commission held that a carry bag is not an optional add-on but a necessary part of making purchased goods deliverable to the customer. Charging separately for it, the commission ruled, is a clear violation of that provision.
The commission also cited a ruling from the District Consumer Disputes Redressal Commission, Hyderabad, which had previously held that retailers charging for carry bags printed with their own brand logos amounts to not just unfair trade practice but also undue profiteering at the expense of the common man.
What did Zudio argue before the commission?
Zudio filed a response and had its authorised signatory appear as a witness. The company produced documents including an authorisation letter, a copy of its RE Bag policy, a welcome board displayed at the store, and a carry bag photo, arguing that customers were informed of the charge.
The commission did not find this sufficient. It noted that regardless of whether the charge was disclosed at the store, the act of charging for a carry bag itself was the violation, not merely the manner of disclosure.
What is the commission's order against Zudio?
The commission's order has multiple parts and goes beyond the individual complainant.
Zudio has been directed to refund Rs 10, the carry bag charge collected from the complainant. It has been ordered to pay Rs 5,000 as compensation and Rs 5,000 towards litigation expenses to the complainant. Additionally, it has been directed to deposit Rs 20,000 as punitive damages to the Consumer Legal Aid fund, imposed specifically because, as the commission noted, several orders have already been passed by various commissions on this very issue and confirmed by higher forums, yet retailers continue the practice uninterrupted.
The total payout ordered comes to Rs 30,010.
All amounts must be paid within 30 days of the order. If not, the entire amount will carry interest at 6 per cent per annum from the date of the order until realisation.
Does this ruling apply only to Zudio?
The commission was explicit that this order is not limited to Zudio. In its ruling, it stated that the order applies to all malls, retail chains, D-Mart, Big Bazaar, Reliance, and similar marketing retailers. It further warned that failure to comply would invite contempt of court proceedings and directed that this order be communicated to all such establishments.
The commission also noted that cloth merchants and grocery shops routinely provide carry bags free of cost and pointed out that large retailers who purchase goods in bulk at lower prices and sell at retail margins have no justification for passing the cost of a carry bag to the customer.
Check the case judgement here:
