HYDERABAD: The District Consumer Disputes Redressal Commission in Hyderabad has ruled that Kolors Health Care Private Limited must refund Rs 2.15 lakh to the complainant, Reddy Siva Swarupa, along with an interest rate of 9 per cent as compensation for the inconvenience caused.
Swarupa visited the Miyapur branch of Kolors Health Care after being enticed by their advertisements promoting cosmetic, slimming and weight reduction services. She paid Rs 2 lakh in three instalments on the same day for weight reduction, slimming and skin treatments.
However, she later discovered that the weight reduction procedure was not a permanent solution and decided to withdraw from the package, seeking a refund. Kolors Health Care refused to refund the amount, citing a no-refund policy.
Swarupa attempted to address her concerns by visiting the corporate office of Kolors Health Care, but she was encouraged to transfer the package services by paying an additional Rs 30,000. Despite paying a total of Rs 2.30 lakh, she did not attend a single session.
Swarupa claimed that Kolors Health Care’s refusal to refund the money, despite providing no services, demonstrated gross negligence on their part. She also stated that she and her daughter experienced inconvenience, hardship, mental distress and financial loss due to the actions of Kolors Health Care. Swarupa accused the company of negligence, deficient service and unfair trade practices.
Kolors Health Care disputed the allegations, arguing that the complaint was not valid under the Consumer Protection Act, of 2019, and contended that the appropriate parties were not named as opposing parties. They claimed to be involved in the weight reduction treatment business, providing the best services in healthcare and lifestyle.
Kolors Health Care also asserted that their counsellors explain the consequences and effects of the treatment procedure to customers before commencing treatment, and Swarupa had accepted these terms and conditions by signing a declaration.
The commission found no evidence that Swarupa sought treatment for her daughter or made additional payments for her treatment. It concluded that Swarupa had only attended one session after paying Rs 2.30 lakh for the package.
The commission also determined that the clauses in the declaration form provided by Kolors Health Care were one-sided, unfair and unreasonable. Including such one-sided terms was considered an unfair trade practice, as it employed unfair methods or practices for marketing the treatments.
The Commission stated that it is unacceptable for a service provider to charge for a service that was neither provided nor utilised. It deemed the collection of advance payments from customers and subsequent refusal to refund the amount based on a self-serving non-refundable clause as both deficient service and unfair trade practices by Kolors Health Care.