Byju’s and their brand ambassador Shahrukh Khan were fined Rs 50,000 each by the District Consumer Commission.
Background
The reason for the fine was the company’s failure to meet teaching standards, while Khan was held responsible for misleading advertising.
Priyanka Dixit, who was enticed by the company’s advertisement featuring Shahrukh Khan and paid Rs 1.8 lakh for IAS coaching at Byju’s, filed the case.
Despite requesting a refund as the faculty did not fulfill its promised services, Byju’s cancelled the admission of Priyanka Dixit.
However, the company failed to return her fees, despite making assurances to do so.
Failure to issue refund
Priyanka Dixit included Shah Rukh Khan as a respondent in the case, stating that she enrolled in the coaching course on January 13, 2021, after being swayed by the company’s advertising campaign featuring Khan.
Dixit alleged that the company had promised her coaching by competent teachers and that her classes would commence on January 14, 2021, which did not occur.
According to her complaint, Dixit had requested a refund and admission cancellation from the company on January 27, 2021.
However, despite numerous follow-up requests, the company failed to refund her fees.
Consumer Protection Act
According to Dixit’s lawyer, Suresh Kanga, under the provisions of the Consumer Protection Act, an individual can file a complaint against a company for service-related errors, as well as against those who endorse it.
The District Consumer Commission has ruled that both Byju’s and Shahrukh Khan must return the student’s deposited fees, in addition to paying the penalties.
The District Consumer Commission ordered Byju’s and Shahrukh Khan to return Rs 1.08 lakh in fees, along with 12 percent annual interest, to Priyanka Dixit, who had deposited the amount at the time of admission in 2021.
The commission also ruled that the company must pay Dixit Rs 5,000 as litigation cost, as well as Rs 50,000 as compensation for the financial and mental distress caused to her.
Both parties involved
The commission ruled that both the local manager of Byju’s and actor Khan must pay the aforementioned amount to Dixit “jointly and severally”.
The phrase “jointly and severally” indicates a partnership where each party shares equal liability regarding legal responsibility.
Both the local manager of Byju’s and actor Khan did not appear in court to contest the case.
Case involving Shah Rukh Khan
On April 26, the District Consumer Disputes Redressal Commission in Indore, Madhya Pradesh issued an order against a Byju’s employee and actor Shah Rukh Khan, accusing them of “fraudulent behavior” and “unfair trade practice”.
According to Dixit, she was enticed to enroll in Byju’s after watching an advertisement featuring Khan.
The commission has ordered that both the local manager of Byju’s and actor Khan pay the amount “jointly and severally” to Dixit.
The term “jointly and severally” implies that each party is equally responsible for liability in the partnership.
Unilateral decision
The commission stated in its order that “unilateral action was taken against” the respondents, namely the Byju’s manager and actor Shah Rukh Khan, as they did not appear in court even after being served notices and did not submit any response on their behalf.
False and misleading online advertisements were allegedly placed on behalf of the opposing parties to encourage the woman complainant to take admission in Byju’s coaching course.
According to the order issued by the commission, “the complainant was induced to take admission in Byju’s coaching course by means of false and misleading online advertisements made on behalf of the opposite parties.
Although the fee was paid, coaching services were not provided, and despite promises of a refund, the fee was not returned.
This behavior amounts to fraud and represents an unfair trade practice.”
