CHENNAI: The District Consumer Disputes Redressal Commission, Chennai (North), has directed a centre offering weight loss treatment to pay Rs 2 lakh in compensation to a city woman after holding that its 100 per cent money-back guarantee claim amounted to a misleading advertisement and unfair trade practice.
Pronouncing the order, the bench comprising president D Gopinath and members Kavitha Kannan and TR Sivakumhar allowed the complaint filed by B Elizabeth Nesamani, a resident of Namalawerpet in Ayanavaram.
Elizabeth told the commission that she came across a social media advertisement by Kolors Health Care Pvt Ltd offering 60 per cent off on weight loss treatment with a 100 per cent money-back guarantee and describing the programme as risk-free.
Believing the claims, she enrolled in the slimming package at the Anna Nagar branch in May 2023 and paid more than Rs 1.17 lakh, partly through finance facilitated at the centre.
However, after the first session, she discontinued the programme due to discomfort and sought cancellation of the loan and refund of the amount.
Despite repeated follow-ups and complaints to the police and the Chief Minister's Cell, the loan account remained active and no refund was issued.
Kolors denied issuing any unconditional refund assurance and contended that its invoices clearly mentioned that fees were non-refundable. It also maintained that the complainant had voluntarily opted for finance from third-party lenders.
The commission observed that the advertisement promising a 100 per cent money-back guarantee stood in direct contradiction to the invoices stating that the amount paid was non-refundable.
Such representation, it held, squarely fell within the definition of misleading advertisement under the Consumer Protection Act, 2019.
While noting that no medical records were produced to establish treatment-related harm, the commission concluded that the failure to honour the refund assurance constituted unfair trade practice.
It directed Kolors to pay Rs 2 lakh as compensation, inclusive of the amount paid, facilitate closure of the loan account, and issue a no-dues certificate within two months, and pay Rs 10,000 towards litigation costs.
The total sum of Rs 2.10 lakh must be paid within two months, failing which it will attract 9 per cent interest per annum from the date of the order until realisation.