Misleading when accruing bonuses – a reason to go to court

Bonuses, points and bonus miles are subject to the Consumer Protection Act. This is stated in the review of the judicial practice of the Supreme Court of the Russian Federation.

The review provides an example from judicial practice, when Aeroflot airline’s customers sued it, indicating that the company massively deceives consumers when accruing miles under the bonus program and, in addition, provides false information about their number, informs prime agency. This claim was rejected by the courts of several instances on the grounds that miles are credited free of charge, which means that the requirement to provide consumers with reliable information about goods, works, services in a timely manner does not apply to this bonus program.

However, the Supreme Court overturned those decisions, holding that earning miles for certain consumer activities was a marketing program for the company to identify consumer needs and generate profits. According to the Supreme Court, in this case, it is quite possible to use the norms of the Law on the Protection of Consumer Rights.

— Indeed, many people have to deal with fraud in the implementation of various marketing strategies of companies. For example, companies may provide inaccurate information about bonuses, their content and quantity,” says lawyer Timur Hardy.

That is, it turns out that some companies with the help of loyalty programs achieve the desired behavior from the consumer, but do not fulfill their obligations to him. And this, according to the Supreme Court of the Russian Federation, is a violation of consumer rights. Therefore, the Supreme Court of the Russian Federation equated bonus programs with the company’s actions to attract consumer attention.

“The relationship between the consumer and the contractor for the implementation of marketing programs and other ways to promote services may be subject to the provisions of the Consumer Rights Protection Law,” the review of the Supreme Court of the Russian Federation states.

Now companies have to be held accountable for their wrongdoing. Otherwise, according to Timur Hardy, the number of lawsuits related to the bad faith of companies in terms of fulfilling obligations to consumers as part of various campaigns and promotions, including the accrual and use of bonus points, chips or miles, will increase many times over.

— I want to note that the decision of the Supreme Court of the Russian Federation is very timely and is aimed at protecting the rights of citizens, including in the field of obtaining reliable information about goods and services. As for the expectations from this decision, it can be predicted that citizens will more often try to obtain compensation for fraud with bonuses or points, including in court. Accordingly, the burden on the judiciary and the legal profession will increase.

Although, perhaps, the verdict of the Supreme Court of the Russian Federation will encourage business representatives to make their marketing campaigns more transparent and understandable to consumers and there will be fewer reasons for filing lawsuits.

Alena Bodrienko.

Photo from the website of the Federal Tax Service of the Russian Federation