Consumer forum holds healthcare organisation guilty of misleading ad, orders ₹2 lakh compensation

A consumer disputes redressal commission has held a wellness chain guilty of issuing misleading advertisements and engaging in unfair trade practice, and directed it to pay a compensation of ₹2 lakh to a woman who enrolled in its slimming programme after seeing promotional claims online.

According to the complaint, the woman said she saw advertisements on Instagram and YouTube promising weight reduction, facial glow, and a “100% money-back guarantee”. Trusting the claims, she and her sister visited the Anna Nagar branch of Kolors Healthcare in May 2023, where the staff allegedly reiterated the refund assurance and persuaded them to enrol under a discounted package costing about ₹2 lakh.

The complainant said she was encouraged to opt for EMI, as she was financially constrained. She alleged that documents were processed and a loan arranged without proper explanation, and she paid an advance before beginning the treatment.

After her first session, she claimed to have experienced severe back pain and decided to discontinue the programme. So she requested that the loan and refund be cancelled. However, despite repeated follow-ups, neither the refund nor the loan closure materialised, forcing her to approach the police and authorities, she said.

Kolors Healthcare denied the allegations, stating that its advertisements were general in nature and did not promise unconditional refunds. It argued that the complainant voluntarily enrolled on the programme after counselling, accepted non-refundable terms in writing, and independently availed loans from financiers, including Bajaj Finance. The company also denied causing any medical issues or making binding refund commitments.

After examining the records, invoices, and the advertisement produced in evidence, the District Consumer Redressal Commission, Chennai (North), headed by D. Gopinath, observed that the promotional material promising “100% money-back guarantee” and “risk-free” treatment could mislead consumers. It noted that such claims contradicted invoices stating that the fees were non-refundable, thereby constituting a misleading advertisement under the Consumer Protection Act, 2019.

While the forum found no conclusive medical proof of treatment-related harm, it held that the failure to honour the advertised refund assurance and resolve the loan issue amounted to unfair trade practices.

The commission allowed the complaint and ordered Kolors Healthcare to pay ₹2 lakh as compensation (including programme fees), facilitate closure of the complainant’s loan within two months, and pay ₹10,000 towards litigation costs. Failure to comply with the order will attract 9% annual interest until payment.