‘Sharing personal info can create havoc if it reached wrong hands’: Consumer panel penalises Chandigarh shoe store

Sindhu, through her counsel, advocate Pankaj Chandgothia, contended that on December 3, 2024, she went to the showroom of INC Shoes to buy sandals. The cashier asked for her mobile number in order to issue the bill. When enquired by the complainant, the cashier told them that it was their policy to take the mobile number of consumers for marketing purposes and messaging and without giving the mobile number he would not be able to issue the bill or process the order. Perforce, the complainant disclosed her mobile number as required and was issued the bill and handed over the bought item.

Chandgothia argued that on the pretext of taking the order and issuing bill, the stores obtain the personal details of consumers and retain it in their database for marketing and other purposes and the said data is prone to leakage or hacking, which results in further harassment of the complainant by way of unwanted calls and solicitation. Many such companies even sell their data to various parties and therefore, profit at the expense of the consumers. Also, by imposing a mandatory requirement to provide mobile numbers, consumers are often forced to share their personal information against their will, after which consumers are often flooded with marketing and promotional messages from retailers, which they did not even opt for at the time of purchasing the product, the complainant argued.

A notice was sent to the store (INC shoes) seeking the company’s version of the case. However, nobody appeared on behalf of them despite service, and the case proceeded ex-parte on May 29.

The bench of Padma Pandey (Presiding Member), and Preetinder Singh (Member) opined that, customers should have the option to provide or withhold their information based on their “comfort level”.

“Retailers should implement appropriate security measures to protect the personal information they collect. However, in the instant case, the mobile number of the complainant was obtained … against the complainant’s wish,” the bench held.

“Personal information such as a mobile number is very vital and can create havoc if it reaches the wrong hands as vital information of every kind is linked with the mobile number. This includes details about the person who owns or is assigned the mobile number. It may include the subscriber’s name, address, and other contact details provided during the registration process. Mobile numbers can be used to track the approximate location of a device, especially when it is in use. Even bank accounts are linked with the mobile numbers and One Time Password (OTP) are also received on registered mobile numbers. Access to this information is typically governed by privacy laws and regulations and any unauthorised access to someone’s mobile information without his/her consent is generally considered a breach of privacy. Therefore, the fundamental right to privacy of the complainant has been breached.”

The commission held that collecting personal information from the complainant without her explicit consent “infringed” her privacy rights and such an act is “deceptive” too.

It also held that the act of INC Shoes amounts to “dark patterns” practices, as per guidelines for Prevention and Regulation of Dark Patterns, 2023, recently notified by Central Consumer Protection Authority.