Chennai Consumer Court Slaps ₹2 Lakh Fine on Kolors Healthcare for Deceptive Weight-Loss Ads
In a significant ruling against deceptive marketing practices, the District Consumer Disputes Redressal Commission in Chennai (north) has ordered Kolors Healthcare to pay ₹2 lakh as compensation for promoting its weight-loss programme with a misleading "100% money-back guarantee." The order, dated February 10, highlights a clear case of unfair trade practice under the Consumer Protection Act, 2019.
Contradictory Terms Exposed in Court
The commission found that the company's advertisements promising a full refund directly conflicted with its billing documents, which explicitly stated that all fees were non-refundable. This contradiction was deemed sufficient to establish that the ads were designed to mislead consumers, exploiting their trust for commercial gain.
The complaint was filed by Elizabeth Nesamani, a resident of Chennai, who enrolled in the weight-loss programme in May 2023 after being attracted by online ads offering discounts and a complete refund assurance. During her initial counselling session, centre staff reportedly reinforced this refund promise and even assisted her in setting up EMIs through third-party finance companies.
Customer's Ordeal with Loans and Refusal
Elizabeth discontinued the programme after just one session, immediately seeking cancellation of her loan and a refund of the amount paid. Despite repeated assurances from the company, her loan accounts remained active, forcing her to escalate the matter to the police and the Chief Minister's cell for intervention.
Kolors Healthcare defended itself by denying any unconditional refund guarantees, arguing that their advertisements were general in nature and that Elizabeth had voluntarily enrolled after accepting written terms confirming the non-refundable policy. The company also claimed that the loans were independent arrangements between the complainant and the finance firms, absolving them of responsibility.
Court's Firm Stand on Consumer Rights
After thorough examination of all documents, the commission firmly rejected these arguments. It held that claims like "100% money-back guarantee" and "risk-free" were highly likely to mislead potential customers, creating false expectations.
The commission's directive includes not only the ₹2 lakh compensation but also mandates that Kolors Healthcare facilitate the closure of Elizabeth's loan account and issue a no-dues certificate within two months. This ruling serves as a stern warning to businesses employing similar deceptive advertising tactics.
This case underscores the importance of transparency in consumer transactions and reinforces the legal protections available against unfair trade practices in India's evolving marketplace.
