Bold Claims, Real Consequences: Court Enforces ‘100% Money-Back’ Promise

A Chennai consumer court has delivered a strong reminder to businesses: if you promise a “100% money-back guarantee,” you must honour it.

In a recent case, a consumer was awarded ₹2 lakh after challenging a company whose advertising promised a full refund but whose contract terms told a different story. The ruling reinforces a powerful message under Indian consumer law advertising claims are not just marketing slogans; they create real obligations.

The consumer had purchased a weight loss programme marketed with bold claims, including a “100% money-back guarantee.” However, when the promised results were not delivered, the consumer sought a refund.

Instead of honouring the refund promise, the company relied on fine print contract terms to deny liability. The terms either limited or contradicted the broad advertising claim.

The consumer challenged this, arguing that:

• The advertisement clearly promised a full refund.
• The service failed to deliver what was promised.
• The fine print could not override a clear public representation.

The Chennai consumer forum agreed.

The court found that misleading advertising and contradictory contract terms amounted to unfair trade practice, and ordered compensation of approximately ₹2 lakh to the consumer.

Why this case matters

This ruling is important for three key reasons:

1. Advertising claims are legally significant

Under the Consumer Protection Act, 2019, misleading advertisements are explicitly prohibited. If a company:

• Makes false claims,
• Conceals material information, or
• Promises benefits it does not intend to provide, it can be held accountable.

A “100% money-back” claim is not decorative language. It creates a legitimate expectation. If conditions apply, they must be clearly and transparently communicated and not hidden in fine print.

2. Fine print cannot cancel bold promises

One of the most common consumer traps is the contradiction between what is advertised publicly, and what is written in the detailed terms and conditions.

Courts increasingly recognise that consumers rely on prominent claims when making decisions. If the headline promise is misleading, the company cannot escape responsibility simply by pointing to restrictive clauses buried in a contract.

3. Consumers can win, if they persist

This case also highlights something encouraging: the consumer grievance system works.

The consumer pursued the complaint through legal channels rather than accepting the company’s refusal. The court reviewed the evidence, including the advertising representation and granted compensation.

This reinforces that consumers are not powerless when faced with misleading commercial practices.

What counts as misleading advertising?

Under consumer law, advertising may be considered misleading if it:

• Gives false guarantees (e.g., “guaranteed results” without proof),
• Hides significant conditions,
• Exaggerates benefits without evidence,
• Makes claims that contradict contract limitations.

Even if a service includes disclaimers, those disclaimers must be clear, fair and not deceptive.

Lessons for consumers

If you encounter a similar situation, here’s what you should do:

Keep evidence, including:

• Screenshots of advertisements
• Brochures or promotional emails
• Website copies showing guarantees
• Payment receipts
• Contracts and terms provided at purchase

Make a written complaint;

• Refer specifically to the advertised claim.
• Explain how the service/product failed to meet that promise.
• Request the refund or remedy promised.

Escalate if necessary

If the company refuses:

• Approach the National Consumer Helpline (NCH).
• File a complaint with the appropriate consumer commission (District, State or National, depending on claim value).

Under the Consumer Protection Act, consumers can seek refunds, compensation, damages for unfair trade practices. The process is designed to be accessible and does not always require expensive legal representation.

Companies must not make false promises

This Chennai ruling is more than just a refund order. It is a reminder that:

If a company promises “100% money-back,” it must mean it.

Consumers have the right to rely on advertising claims. When those promises are broken, the law provides protection.

The case stands as a positive example of consumer empowerment, proof that standing up to misleading practices can lead to real results. If you believe you’ve been misled by a promotional claim, don’t ignore it. Document it. Challenge it. Escalate it if necessary.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk

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