If you are stuck in such a situation, here is what to do.

This case involves a matter of principle more than a significant monetary amount, highlighting a common issue where companies fail to adhere to their own stated terms and conditions. Ms. Priya purchased a gift card worth ₹3,000 for ‘GlamourHub,’ a popular online retailer, from a third-party platform called ‘GiftNow.in.’ She had used this platform before without any issues.

Her specific intention was to use the gift card to purchase a gold-plated trinket from GlamourHub. Before making the purchase, she diligently reviewed the gift card’s terms and conditions, which did not mention any restrictions on buying precious metals or trinkets. However, when she tried to complete the purchase on the GlamourHub website, the option to pay via gift card was disabled for that specific item.

Frustrated, she contacted GlamourHub’s customer support. Despite multiple interactions, the support team provided repetitive and unhelpful instructions on the general process of using a gift card, failing to address her specific problem. After they failed to follow up on their promise to investigate the issue, she contacted them again. This time, the company flatly refused to either allow the purchase or refund the gift card’s value. Their refusal to honor their own terms and conditions is the central issue, prompting the question of legal recourse.

Advice in such cases

• Preserve all communication, including emails, chat transcripts, and records of phone calls with the company.
• Take screenshots of the company’s terms and conditions as displayed on their website at the time of the dispute.
• Take a screenshot of the checkout page showing that the gift card payment option is unavailable for the desired product.
• Before proceeding to court, it is advisable to send a formal legal notice to the company through a lawyer. This often prompts a resolution without further litigation.

Applicable Sections of Law

This situation is primarily governed by the Consumer Protection Act, 2019. The key concepts applicable here are:

• Deficiency in Service: Under Section 2(11) of the Act, a “deficiency” means any fault, imperfection, shortcoming, or inadequacy in the quality, nature, and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service. Refusing to honor a gift card as per the stated terms constitutes a deficiency in service.
• Unfair Trade Practice: Section 2(47) defines “unfair trade practice” to include practices that promote the sale or use of any goods or services by adopting deceptive methods. Stating that a gift card can be used and then imposing hidden restrictions at the time of purchase can be argued as an unfair trade practice.

If you are the complainant

• Gather all your evidence systematically. This includes the proof of purchase for the gift card, a copy of the gift card details, the terms and conditions, and all correspondence with the company.
• You can file a complaint before the appropriate District Consumer Disputes Redressal Commission. For claims up to ₹50 lakh, the District Commission has jurisdiction. The complaint can be filed online through the e-Daakhil portal.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• In your complaint, you should clearly state the facts, the deficiency in service, the relief you are seeking (e.g., refund of ₹3,000, compensation for mental harassment, and litigation costs), and attach all supporting evidence.

If you are the victim

• Recognize that as a consumer, you have rights protected under the law. The amount of money involved does not diminish your right to receive the service you paid for.
• Do not be deterred by the company’s refusal to cooperate. Keep a calm and documented approach to the dispute.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Understand that filing a consumer complaint is a straightforward process designed to be accessible to the common person. Your principled stand can prevent the company from repeating such behavior with other customers.

How the police behave in such cases

The police have no role to play in such matters. This is a consumer dispute, which is civil in nature. The police’s jurisdiction is limited to criminal offenses. You should not approach the police for such issues, as they will rightly direct you to the Consumer Commission. The entire grievance redressal mechanism for such disputes is under the Consumer Protection Act, 2019, and its designated commissions.

FAQs people normally have

What evidence is required?

To build a strong case, you will need the following evidence:

• The receipt or invoice for the purchase of the gift card.
• A digital or physical copy of the gift card and its number.
• A screenshot or saved copy of the terms and conditions associated with the gift card.
• Screenshots of the company’s website showing the product you intended to buy and the error or restriction at the payment stage.
• Copies of all emails, chat logs, or any other written communication with the company’s customer support.
• A copy of the legal notice sent to the company, if any, and its postal receipt.

How long will the investigation take?

Consumer commissions do not conduct an “investigation” in the way police do. The process is a legal proceeding. Once you file a complaint, the commission will issue a notice to the opposite party (the company), which then has to file its reply. The Consumer Protection Act, 2019, mandates an endeavor to dispose of complaints as expeditiously as possible. While the goal is to decide a case within three to five months, the actual timeline can vary depending on the complexity of the case, the commission’s workload, and whether any party seeks adjournments. For a straightforward case like this, a resolution can often be achieved within a few months.

Advocate Sudhir Rao, Supreme Court of India