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

Mr. Alok Verma, a resident of Nagpur, recently purchased a digital gift card from an online portal called “QuickVouchers Online” as a present for a family member. To his dismay, when the recipient tried to use the card, it showed an error and was deemed invalid. Mr. Verma immediately contacted the company’s customer support to file a complaint. Initially, the support team assured him a resolution within 48 hours. When that deadline passed without any solution, he was asked to wait for another 72 hours. It has now been over a month, and the company has completely stopped responding to his emails and calls. They have neither provided a working gift card nor refunded his money, leaving him frustrated and unsure of his legal options.

Advice in such cases

When a company fails to provide the service it promised and refuses to issue a refund, it constitutes a clear case of deficiency in service. Here are the steps you should take:

• Organize all Documentation: Gather every piece of evidence related to the transaction. This includes the invoice or receipt, bank statement showing the payment, the gift card details, and screenshots of all email and chat communication with the company.
• Send a Formal Legal Notice: The first formal step is to have a lawyer draft and send a legal notice to the company’s registered office. This notice will outline the entire issue, the deficiency in their service, and demand a resolution (refund or a valid card) within a specific timeframe, typically 15 or 30 days. It also warns of legal action if they fail to comply.
• File a Consumer Complaint: If the company does not respond to the legal notice, your next step is to file a complaint before the appropriate Consumer Disputes Redressal Commission under the Consumer Protection Act, 2019.
• 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.

Applicable Sections of Law

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

• Deficiency in Service: Section 2(11) of the Act defines “deficiency” as 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. Selling a non-functional gift card and then failing to provide support is a classic example of deficiency in service.
• Unfair Trade Practice: Section 2(47) covers practices that are deceptive or unfair to consumers. A company’s refusal to refund money for a product that does not work can be argued as an unfair trade practice.
• Consumer Rights: The Act protects a consumer’s right to be informed, the right to choose, the right to be heard, and the right to seek redressal.

If you are the complainant

As the person who has been wronged, you are the complainant. Your goal is to seek justice and compensation for the loss and harassment you have faced. Here is your course of action:

• Draft the Complaint: Prepare a formal complaint detailing all the facts of the case, starting from the date of purchase to the company’s refusal to cooperate. Attach copies of all evidence.
• Determine Jurisdiction: You can file the complaint in the District Consumer Commission where the company’s office is located or where you reside. For claims up to Rs. 50 lakh, the complaint lies with the District Commission.
• File the Complaint: You can file the complaint physically at the commission’s office or online through the E-Daakhil portal (edaakhil.nic.in). The process is designed to be consumer-friendly.
• Seek Relief: In your complaint, you can ask for a full refund of the amount, compensation for the mental agony and harassment caused, and the costs incurred in litigation.
• 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.

If you are the victim

As a victim of a deficient service or an unfair trade practice, the law is on your side. It is crucial to act systematically to enforce your rights.

• Do Not Delay: A consumer complaint must be filed within two years from the date the cause of action arose (i.e., when the card failed to work or when the company stopped responding).
• Preserve All Communication: Do not delete any emails, text messages, or chat records with the company. These are critical pieces of evidence.
• Follow the Process: While it might seem daunting, the consumer court process is structured to help you. Start with a legal notice, and if there is no response, proceed with filing the complaint.
• 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.

How the police behave in such cases

Generally, the police will not intervene in such matters as they are considered civil or consumer disputes, not criminal offenses. If you approach a police station, they will likely advise you to file a case in the consumer court. A police complaint (FIR) would only be registered if there is a clear element of criminal fraud or cheating under the Bharatiya Nyaya Sanhita (BNS), which can be difficult to prove in cases of service deficiency. The most effective and appropriate remedy lies with the Consumer Commission.

FAQs people normally have

Do I need a lawyer to file a consumer case?
While it is not mandatory to hire a lawyer and you can represent yourself, having legal counsel is highly recommended. A lawyer understands the procedural nuances and can present your case more effectively, increasing your chances of a favorable outcome.

What if the company is in another city?
Under the Consumer Protection Act, 2019, you have the convenience of filing the complaint in the District Commission within whose jurisdiction you reside or personally work for gain.

Can I claim more than just the refund?
Yes. Besides the refund, you are entitled to claim compensation for the mental distress, harassment, and financial loss suffered. You can also claim the costs of litigation, including the lawyer’s fees.

What evidence is required?

Strong evidence is the backbone of a successful consumer complaint. You will need:

• Proof of purchase, such as the tax invoice or receipt.
• Bank or credit card statement showing the debit for the purchase.
• The gift card number and any related details.
• Screenshots of the error message when trying to use the card.
• Copies of all emails, chat transcripts, or records of calls made to the company.
• A copy of the legal notice sent to the company and the postal receipt.

How long will the investigation take?

The Consumer Protection Act, 2019, mandates a swift resolution. The goal is to decide a case within three months from the date of receipt of notice by the opposite party, or within five months if the case requires analytical testing of a product. However, in practice, the timeline can vary depending on the complexity of the case, the commission’s workload, and the tactics employed by the opposite party. A straightforward case like this can often be resolved within 6-12 months.

Advocate Sudhir Rao, Supreme Court of India