Safiya Malik

The Madras High Court has granted an interim injunction against People Interactive (I) Pvt. Ltd., the parent company of Shaadi.com, in response to a suit filed by Matrimony.com Ltd. The court restrained the respondent from advertising services with the claim of a "30-day money-back guarantee," finding the advertisement to be misleading and deceptive under Indian advertising regulations.

The dispute arose when Matrimony.com Ltd., a leading online matchmaking service provider, filed a civil suit (C.S. No.122 of 2024) seeking permanent injunctions against People Interactive (I) Pvt. Ltd. The applicant alleged that the respondent’s advertisements, specifically those promoting a "30-day money-back guarantee," were in violation of the Code for Self-Regulation of Advertising Content in India and the Cable Television Networks Rules, 1994.

The applicant contended that:

• The advertisements misled consumers by implying a guarantee of finding a match within 30 days.

• The terms and conditions of the refund were not clearly disclosed, making it difficult for consumers to understand the actual applicability.

• The campaign created false expectations among consumers and could lead to widespread disappointment.

In response, the respondent defended the legitimacy of its advertisements, asserting that:

• The money-back guarantee was applicable only under specific conditions.

• The terms and conditions were clearly mentioned on its website and promotional materials.

• The suit was an attempt by the applicant to suppress competition in the online matchmaking industry.

Justice RMT. Teekaa Raman examined the claims and counterclaims while reviewing the applicable legal framework. The court examined the respondent's advertising claims in the context of consumer protection principles, including "Caveat Emptor" (let the buyer beware) and "Caveat Venditor" (let the seller beware). The judgment noted that modern consumer law shifts responsibility to the seller to ensure advertisements do not mislead consumers.

The Advertising Standards Council of India (ASCI) had previously reviewed the complaint and concluded that the respondent’s "30-day money-back guarantee" was misleading. The court cited ASCI’s findings, which stated: "The Money Back Guarantee is unfulfilled by imposing conditions that contradict the material claim made in the advertisement. The '30 Day Money Back Guarantee' is misleading and is likely to lead to widespread disappointment in the minds of the consumer and is in contravention of Chapter I, Clauses 1.4 and 1.5 of the Code."

While acknowledging that ASCI is not a statutory authority, the court nonetheless stated that advertisers must not mislead the public.

The judgment noted that:

• The fine print disclaimers in the respondent’s advertisements were not adequately visible.

• The conditions for refunds were not clearly disclosed in television commercials.

• The language and visuals of the advertisements created an impression of an absolute guarantee, whereas the actual offer was highly conditional.

The court found that over 1,200 consumers had sought refunds, indicating that the public was misled by the advertisement.

In light of these findings, the Madras High Court granted an interim injunction, restraining People Interactive (I) Pvt. Ltd. from continuing its "30-day money-back guarantee" advertisements. The court ordered that: "The respondent is restrained from advertising or promoting its services using the slogan '30 Day Money Back Guarantee' in textual or visual form in any of its advertisements, including TV commercials, website promotions, signage, billboards, pamphlets, and newspaper advertisements."

The injunction will remain in effect until the final disposal of the suit.

Case Title: Matrimony.com Ltd. vs. People Interactive (I) Pvt. Ltd.
Case Number: O.A. No.389 of 2024 in C.S. No.122 of 2024
Bench: Justice RMT. Teekaa Raman

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