Source: Supreme Court

Why in News?

Recently, the Supreme Court in the matter of Yash Raj Films Pvt Ltd v. Afreen Fatima Zaidi and Anr. has held that the promotional trailers are unilateral and do not qualify as offers/promises eliciting acceptance and enforceable by law.

What was the Background of Yash Raj Films Pvt Ltd v. Afreen Fatima Zaidi and Anr. Case?

• The appellant is a well-known film producer. It produced a film called ‘Fan’ in the year 2016.
• Before the release of the film, the appellant circulated a promotional trailer, both on television and online, which contained a song in the form of a video.
• The complainant, a teacher in a school in Aurangabad, states that having watched the promotional trailer of the film, she decided to go to watch the movie on the silver screen with her family.
• However, she found that the movie did not contain the song, even though the song was widely circulated for promoting and publicising the movie. She filed a consumer complaint before the District Consumer Redressal Forum and claimed Rs. 60,550 as damages.
• The District Consumer Redressal Forum dismissed the complaint on the ground that there is no relationship of consumer and service provider.
• Thereafter, the complainant filed an appeal before the State Commission and the State Commission awarded Rs. 10,000 as compensation for mental harassment and Rs. 5,000 as cost to the complainant.
• The matter was carried to the National Consumer Disputes Redressal Commission (NCDRC).
• The NCDRC had held that inclusion of a song in the promo of the movie when it is not actually a part of the movie amounted to deceiving viewers and was an unfair trade practice under Section 2(1)(r) of the Consumer Protection Act, 1986.
• Thereafter, an appeal was filed before the Supreme Court by the appellant challenging the NCDRC order.
• Allowing the appeal, the Supreme Court set aside the order of NCDRC.

What were the Court’s Observations?

• A Bench comprising of Justices PS Narasimha and Aravind Kumar observed that a promotional trailer is unilateral. It is only meant to encourage a viewer to purchase the ticket to the movie, which is an independent transaction and contract from the promotional trailer. A promotional trailer by itself is not an offer and neither intends to nor can create a contractual relationship. Since the promotional trailer is not an offer, there is no possibility of it becoming a promise.
• The Court further emphasized that services involving presentation of art necessarily involve the freedom and discretion of the service provider and no unfair trade practice was made out nor any enforceable contractual promise broken.

What are the Relevant Legal Provisions Involved in it?

Section 2(1)(r) of the Consumer Protection Act, 1986

• This Act has been enacted to protect the interests of consumers and for that purpose, to establish authorities for the settlement of consumer disputes.
• Section 2(1)(r) of this Act deals with unfair trade practices.
• After, the amendment in the year 2019, Section 2(47) deals with unfair trade practices.

Offer

• The first thing for creating a contract is a valid proposal or offer.
• Section 2(a) of the Indian Contract Act, 1872 (ICA) states that when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person to such act or abstinence, he is said to make a proposal or offer.

Promise

• As per Section 2(b) of ICA, when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.
• A proposal is therefore a prerequisite to a promise.