Chennai: A consumer court in Chennai ruled that Kolors Healthcare’s weight-loss programme, promoted with a “100% money-back guarantee”, amounted to a misleading advertisement, and directed the company to pay 2 lakh as compensation.In an order dated Feb 10, the District Consumer Disputes Redressal Commission, Chennai (north), said the refund promise in the ads conflicted with billing documents that stated fees were non-refundable, constituting an unfair trade practice under the Consumer Protection Act, 2019.
The complaint was filed by Elizabeth Nesamani, a Chennai resident. She enrolled in a weight-loss programme in May 2023 after seeing ads online offering discount and a full refund. Elizabeth said the centre staff reiterated the refund assurance during counselling and facilitated EMIs through third-party firms .According to her complaint, she discontinued the programme after the first session and sought cancellation of the loan and a refund of amount paid. She said despite repeated assurances, the loan accounts remained active, forcing her to approach the police and the CM’s cell.The service provider denied issuing any unconditional refund assurance, arguing that its ads were general in nature and that the complainant voluntarily enrolled after accepting written terms stating that fees were non-refundable. It said the loans were independent arrangements between complainant and finance firms.After examining the documents, the commission held that the “100% money-back guarantee” and “risk-free” claims were likely to mislead consumers. It noted that the contradiction between the ad and billing terms was sufficient to establish a misleading ad and unfair trade practice.The commission directed the opposite party to pay 2 lakh as compensation and ordered the company to facilitate closure of the loan account and issue a no-dues certificate within two months.
