Consumer Court Slams Hospitality Firm for Deceptive Membership Practices
The District Consumer Disputes Redressal Commission in Ludhiana has delivered a significant verdict against a Mohali-based hospitality company, ordering immediate refund of membership fees to a customer who fell victim to unfair trade practices. The commission found Club Retreat Hospitality Private Limited guilty of misleading consumers through deceptive marketing tactics.
The Deceptive Membership Pitch
According to the complaint filed by Jarnail Singh, a resident of Vikas Nagar on Pakhowal Road, the trouble began when managers Vishal and Harmandep Singh from Club Retreat Hospitality contacted him telephonically. They offered what seemed like an irresistible deal - a free three-day, two-night stay voucher at premium hotels across India, inviting him to Hotel K.G. in Ludhiana for further details on April 2, 2022.
During the presentation meeting, the company representatives painted an attractive picture of their services. They claimed to have 4-star and 5-star properties throughout India and abroad and offered membership for Rs 40,000 with an annual subscription fee of Rs 5,000 instead of the regular Rs 9,999. The company further sweetened the deal by promising immediate cashback of Rs 2,732 upon payment and assured premium hotel rooms whenever the customer desired.
The Reality Behind the Promises
The complainant's experience turned sour when he actually tried to use the membership services. On September 19, 2022, Jarnail Singh requested room bookings in Goa, Mumbai, or Kerala for two nights and three days. The company took over 15 days to respond and eventually sent an email on October 7, 2022, offering Goa booking from November 25-27 but demanding Rs 2,500 per night as utility charges.
Upon investigation, Singh discovered that the normal room rates in the suggested hotels were approximately the same amount, and more importantly, these were not 4-star or 5-star properties as promised. When he confronted the company via email on October 17, 2022, and requested his Rs 40,000 refund, the company neither responded nor returned his money.
Court Delivers Justice
The consumer commission, comprising President Sanjeev Batra and Member Monika Bhagat, examined the evidence and noted that the opposite parties refused to accept court notices and failed to appear despite repeated opportunities. The case proceeded ex-parte from May 23, 2024.
The court observed that the sudden imposition of utility service charges at the last moment before service availing constituted unfair trade practice. The commission ordered Club Retreat Hospitality to refund the entire Rs 40,000 membership amount with 9% annual interest from the complaint filing date until actual payment.
The court directed the company to complete the payment within 30 days from receiving the order copy and specified that the interest amount would serve as both costs and compensation. This judgment serves as a strong reminder to companies engaging in deceptive marketing practices and reinforces consumer protection mechanisms in India.
