The Central Consumer Protection Authority (“CCPA”), in a recent decision, held that the respondent has been engaged in misleading advertisements and unfair trade practices by providing false guarantees to its consumers. The respondent had published advertisements across various platforms, providing a guarantee of “AUTO IN 5 MIN OR GET ₹ 50”. Instead of receiving the promised amount, consumers were credited with only ₹ 5 in the form of in-app currency.
It was alleged that the consumers were misled into believing that a flat amount of ₹ 50 would be credited in case of failure to provide the guaranteed service. The respondent, on the other hand, contended that the advertisements were not misleading and there was no deliberate concealment of relevant information from consumers as the advertisements mentioned ‘T&C’s Apply’. The respondent further contended that email id of grievance officer was mentioned in the customer’s T&C’s.
After hearing both the parties, CCPA held that the “T&C apply” disclaimer in the advertisements was barely readable in extremely small font, and the respondent failed to address the complaints of the consumers despite claiming to provide a grievance redressal platform. The respondent failed to provide the promised guarantee of ₹ 50 to its consumers while continuing to run the misleading advertisements across various platforms, resulting in unfair trade practice. CCPA further stated that express or implied representation, if made without substantiation, falls within the ambit of unfair trade practice. CCPA directed the respondent to discontinue the misleading advertisements with immediate effect along with a penalty of ₹ 10,00,000.
Source: Central Consumer Protection Authority
