In a significant ruling for consumer rights, a district consumer commission in Ahmedabad has directed a travel loyalty programme company to compensate a customer for abruptly cancelling his hard-earned reward points. The company, InterMiles JetPrivilege Pvt Ltd, has been ordered to pay the customer over Rs 1.85 lakh, which includes the full value of the cancelled points and additional compensation.
The Case of the Vanishing Travel Miles
The complainant, Jaydeep Pandya, a resident of Naranpura, was a member of the InterMiles loyalty programme. This programme, formerly known as JetPrivilege, allows members to earn 'miles' or points through everyday spending and travel, which can later be redeemed for flights, hotel stays, and other lifestyle rewards. Over time, Pandya had accumulated a substantial balance of over 3.50 lakh InterMiles, which had a monetary value exceeding Rs 1.75 lakh.
The dispute began in 2024 when Pandya logged into his account only to discover that his entire balance of InterMiles had been cancelled. He promptly approached the District Consumer Disputes Redressal Commission in Ahmedabad (Additional), arguing that the company had terminated his points without sending him any prior intimation about their impending expiry or cancellation.
Clash of Arguments Before the Commission
During the proceedings, Pandya stated that when he raised the issue with InterMiles, the company claimed to have sent an email notice in October 2023 informing him of the expiry. However, Pandya asserted he never received such a notice and the company failed to provide him with a copy of the alleged email as proof.
InterMiles, on its part, defended the cancellation. The company argued that the action was strictly in accordance with the programme's terms and conditions. They maintained that information regarding point expiry was communicated to members and was available within the account portal after login. To support their claim, the company presented its policy framework and some email-related records, including screenshots.
Commission Finds Company's Proof Lacking
After hearing both sides, the consumer commission delivered a verdict in favour of the customer. The commission critically examined the evidence presented by InterMiles and found it insufficient. The adjudicators noted that the company failed to produce cogent proof that a specific prior notice of expiry was actually sent to Jaydeep Pandya.
Furthermore, the commission pointed out inconsistencies and gaps in the company's documentation, particularly concerning the transition between old and new expiry policies. It also declined to accept the reliance on screenshots provided by InterMiles, stating they lacked key details necessary to validate the company's claim of having notified the complainant.
In its final order, the commission stated, "The complainant (Pandya) is entitled to Rs 1,75,383, the amount of cancelled InterMiles, from the opponent company, along with interest at the rate of 7% per annum from the date of the complaint till the realisation of the amount of the award." In addition to this principal amount, the commission also directed InterMiles to pay Rs 10,000 as compensation for the mental agony and litigation costs incurred by Pandya.
This ruling underscores the importance of transparent communication from companies running loyalty programmes and reinforces that consumers have a right to proper notice before any forfeiture of earned benefits. It serves as a precedent for other customers who may face similar unilateral actions from service providers.
