Legal Action for Misleading Social Media Giveaway by a Tech Company

Legal Action for Misleading Social Media Giveaway by a Tech Company

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

Mr. Sameer Verma, a resident of Pune, recently participated in an online giveaway organized by a prominent electronics company, “FutureGadgets Pvt. Ltd.,” and its CEO, Mr. Alok Jain. The giveaway was promoted on a popular social media platform, and the terms explicitly stated that an advanced AI, named ‘AI-Predictor’, would choose the winner randomly.

Following the rules, Mr. Verma commented on the post. To his delight, the AI-Predictor publicly replied to his comment, congratulating him and declaring him the winner. The reply was visible to everyone on the platform. Believing he had won, Mr. Verma shared the exciting news with his friends and family. However, a few days later, FutureGadgets Pvt. Ltd. announced a completely different list of winners, most of whom were well-known social media influencers. The company offered no explanation as to why the AI-Predictor’s public declaration was ignored or why Mr. Verma was not included in the final list. This incident left Mr. Verma feeling publicly humiliated, misled, and caused him significant emotional and mental distress.

Advice in such cases

When a company’s promotional contest or giveaway is misleading, it can constitute an unfair trade practice, and you may have legal recourse.

  • Gather Evidence: The first step is to collect all possible evidence. This includes screenshots of the original giveaway announcement, the terms and conditions, the AI’s public reply declaring you the winner, the final announcement of different winners, and any other relevant communication.
  • Send a Legal Notice: Before approaching a court or consumer forum, it is advisable to have a lawyer send a formal legal notice to the company. This notice will outline your grievance, the evidence you possess, and the relief you seek (e.g., the prize, compensation for mental agony). Often, companies prefer to settle the matter at this stage to avoid litigation.
  • File a Consumer Complaint: If the legal notice does not yield a satisfactory response, you can file a complaint with the appropriate Consumer Disputes Redressal Commission (Consumer Court) 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 primarily falls under the purview of civil and consumer law rather than criminal law.

  • Consumer Protection Act, 2019: This is the most relevant legislation. A misleading advertisement or promotional contest falls under the definition of “unfair trade practice” under Section 2(47) of the Act. The company’s failure to honour the giveaway result announced by its own AI can be termed a “deficiency in service” under Section 2(11). You can seek relief, including the prize itself and compensation for the mental agony and harassment suffered.
  • Indian Contract Act, 1872: The giveaway announcement can be construed as a “unilateral offer” to the public. Your participation is the “acceptance” of the offer. The company’s failure to fulfill its promise after your selection can be considered a breach of contract.
  • Law of Torts: You can also explore a civil suit for damages on grounds of negligence and for causing mental distress and reputational harm, although the consumer forum is a more direct and efficient remedy.

If you are the complainant

  • Document Everything: Keep a detailed record of all events, including dates, times, and links to the social media posts. Do not delete any messages or posts related to the incident.
  • Be Clear About Your Claim: Decide what you want to claim – the prize, a monetary compensation for the prize’s value, or additional compensation for the emotional distress and legal costs.
  • Stay Patient: The legal process can take time. Follow your lawyer’s advice and be prepared for the proceedings.
  • 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.
Legal Action for Misleading Social Media Giveaway by a Tech Company

If you are the victim

Feeling misled and humiliated is a valid emotional response. It is important to channel these feelings into constructive action.

  • Preserve Your Digital Footprint: Take screenshots and save web page archives immediately, as the company might delete the posts to remove evidence.
  • Communicate Formally: After the initial incident, any further communication with the company should ideally be in writing (email) or through your lawyer to create a paper trail.
  • Seek Professional Guidance: The complexities of consumer and contract law make professional legal advice essential.
  • 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

The police are unlikely to get involved directly in such a matter. This is because the dispute is of a civil nature, concerning a breach of promise or an unfair trade practice, not a criminal offence like cheating under Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023. For a criminal case of cheating, one needs to prove a dishonest intention to deceive from the very beginning, which can be difficult in such promotional contests. The police would, in all likelihood, advise you to approach the Consumer Court or file a civil suit.

FAQs people normally have

  • Is a social media post legally binding?
    Yes, a public announcement for a contest with clear terms can be considered a unilateral offer. When a participant fulfills the conditions, it creates a binding agreement.
  • Can I sue a company for just emotional distress?
    Yes, under the Consumer Protection Act, 2019, you can specifically claim compensation for mental agony and harassment caused by an unfair trade practice or deficiency in service.
  • What if the company blames the AI for the mistake?
    The company is responsible for the tools and agents it employs, including AI. Blaming the AI is not a valid legal defence; the company is vicariously liable for the AI’s actions in its official capacity.
Legal Action for Misleading Social Media Giveaway by a Tech Company

What evidence is required?

The strength of your case depends heavily on the quality of your evidence. You will need:

  • A screenshot or saved link of the original giveaway post by the company.
  • A screenshot of the terms and conditions, especially the part mentioning the AI’s role in selecting the winner.
  • A clear, unedited screenshot of the AI’s public reply naming you as the winner. Ensure the timestamp and context are visible.
  • A screenshot of the company’s final announcement showing the different winners.
  • Copies of any emails, messages, or a legal notice sent to the company and their replies, if any.

How long will the investigation take?

The timeline can vary:

  • Legal Notice: A company is typically given 15 to 30 days to respond to a legal notice. The issue could be resolved within this period if they agree to a settlement.
  • Consumer Court: If a complaint is filed, the process can take several months to over a year, depending on the complexity of the case and the workload of the specific consumer forum. The Consumer Protection Act, 2019, aims for speedy disposal, but delays are common.

Advocate Sudhir Rao, Supreme Court of India

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