Consumer Court Directs Amazon To Pay INR 40K For Not Delivering INR 100 Rakhi

A Mumbai consumer dispute redressal tribunal has directed ecommerce major Amazon to pay a compensation of INR 40,000, inclusive of legal costs, to an aggrieved customer over failure to deliver a Rakhi worth INR 100.

In an order dated February 11, a bench of  Mumbai suburban region’s District Consumer Disputes Redressal Commission issued directions to deposit the amount within 60 days of passing the order. 

As per the order, the customer had ordered a Rakhi on the ecommerce platform in August 2019. However, Amazon later cancelled the order after the scheduled date of delivery and refunded the INR 100 paid for placing the order.

However, the complaint alleged that the delivery of the product was entrusted to a courier service that had been defunct. The plea also claimed that the Rakhi, in question, was shipped by Amazon on July 25, 2019, more than a week before the order was actually placed. 

Subsequently, the complainant found similar complaints from others and sent a legal notice to the ecommerce major to seek compensation to the tune of INR 4.5 Lakh for alleged deficiency in service and unfair trade practices.

Consumer Court Cracks The Whip On Amazon

After hearing the plaint, the commission found the ecommerce major guilty of “deficiency in service and adopted (adopting) unfair trade practice” and directed it to pay the compensation amount. 

Arguing before the consumer court, Amazon contended that it was merely an independent third-party facilitator which allowed sellers to list on the platform. The ecommerce platform also claimed that it cannot be held responsible for the listing and cannot “control the sale transaction”.

In response, the tribunal observed that there was no documentary proof to show that Amazon had forwarded the amount of INR 100 to “Dhanashree Rakhi” (the seller of the Rakhi), which implied that the said sum was lying in the account of the ecommerce platform itself. 

With this, the tribunal established that the transaction was indeed between Amazon and the complainant, adding that the ecommerce platform itself was responsible for the delivery.

“It (Amazon) is duty bound to the complainant as well as to her money. The online marketplace… earns the revenue each time a consumer clicks on its website.. Therefore, it is the duty of the opposite party (Amazon) that it should verify the whereabouts as well as the status of the seller before accepting the order… We therefore observe that the amount of the said Rakhi was with it (Amazon) and hence responsible for its timely delivery and not doing it has committed deficiency in service and adopted unfair trade practice,” read the order.

With regards to the INR 4.5 Lakh compensation sought, the consumer grievance redressal tribunal observed that the complainant did not produce any cogent evidence, besides stating that the non-delivery of the Rakhi to her brother’s son caused “emotional hurt and harassment” to her.

Nevertheless, the commission ordered Amazon to pay INR 30,000 as compensation along with INR 10,000 as costs for pursuing the case.

“It is pertinent to record that the Rakhi is not such a commodity, which is not available in the open market. However, since the complainant has made out (a) case for deficiency in service, she is entitled for the reasonable damages,” added the order passed by a coram of president Samindara Surve and member Sameer Kamble.

Notably, this is not the first time that the ecommerce major has landed in choppy waters with Indian regulators. Last week, consumer affairs minister Pralhad Joshi said that the Central Consumer Protection Authority (CCPA) issued notices to Amazon, among other ecommerce platforms for selling Pakistani flags and related merchandise. 

Last year, the Competition Commission of India also internally found Amazon, along with Flipkart, guilty of violating competition laws by giving preference to select sellers on their platforms.