Bangalore District Commission Holds Justdial Responsible for Failing to Provide Customer Leads Despite Payment by Coaching Institute

LI Network

Published on: February 19, 2024 at 12:35 IST

The III Additional Bangalore Urban District Consumer Disputes Redressal Commission, Bengaluru, found Justdial guilty of deficient services and unfair trade practices for failing to deliver customer leads to a coaching institute despite receiving payments for advertisements.

The bench, consisting of Shivarama K (President), Rekha Sayannavar (Member), and Chandrashekar S Noola (Member), ruled that Justdial must refund Rs. 6 lakh to the complainant and pay compensation of Rs. 30,000 along with Rs. 10,000 for litigation costs.

M/s. Gate Indian Institute of Tutorials, the complainant, operated as a Registered Company under the Companies Act, functioning as a Proprietorship Firm.

The complainant offered both online and offline coaching programs and entered into agreements with Justdial Pvt. Ltd. These agreements focused on providing details of end-users and featuring advertisements in phone, web, and app searches.

Despite not signing a formal contract, the complainant paid Rs. 7,05,360 to acquire leads but did not receive the promised leads. After numerous requests, the complainant sought a refund due to unsatisfactory service. Justdial failed to respond, leading to the consumer complaint.

Observations by the District Commission:

The District Commission affirmed the complainant’s consumer status under Section 2(7) of the Consumer Protection Act, 2019, and dismissed Justdial’s argument that the complainant did not qualify as a consumer.

It held that Justdial failed to provide the agreed leads, constituting a deficiency in service and unfair trade practices. Despite the complainant’s requests, Justdial denied a refund, leading to the commission’s directive for a Rs. 6 lakh refund from the date of the cease service request.

Additionally, Justdial was ordered to pay interest at 9% per annum, compensation of Rs. 30,000 for mental stress, and Rs. 10,000 for litigation costs.

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