Flipkart & Its Seller Accused Of Selling Products Over MRP: Report

Telegana’s District Consumer Disputes Redressal Commission has accused ecommerce giant Flipkart and its seller of selling products over the maximum retail price (MRP) via its platform. 

The commission said that Flipkart and the seller are concertedly accountable for unfair trade practices. It further asked both parties to pay monetary compensation to the consumer. 

Originally, Flipkart and its seller were denounced following a consumer’s complaint stating that the ecommerce giant and its seller charged INR 140 over the MRP for two Refined Sunflower Oil pouches (INR 70 each for Refined Sunflower Oil pouches). The complainant said that the original MRP was removed by the ecommerce platform and its seller. 

On this, the commission was chaired by the president, Mamidi Christopher, and members Sandhya Rani and K. Venkateshwarlu, stated that Flipkart and the seller will be held accountable for any defect, inadequate service and unfair trade practice on the services or products sold on their platform. 

The commission directed Flipkart and its seller to pay the additional INR 140 that they charged over two Refined Sunflower Oil packets. Besides, they are asked to pay compensation amounting INR 50K and additional costs up to INR 3K to the complainant. 

Furthermore, the ecommerce platform is also asked to replace the two packets of the aggrieved consumer. 

The commission has given a period of 30 days to pay off the compensation amount and implement the said changes. 

Taking into account the present incident, the commission also said that Flipkart has not performed its duties of sellers on the marketplace as per the Consumer Protection E-Commerce Rules, 2020. 

In its retort, Flipkart denied allegations saying that it has wrongfully been prosecuted in the complaint. It also stated that as per the Legal Metrology (Packed Commodity) Amended Rules 2017, an online marketplace or ecommerce entity needs to ensure that all monetary information should be displayed on its digital and electronic network ( a network that transmits information between two or more devices in a company). 

Flipkart said that as per the said rules, it cannot be held liable for ensuring the correctness of monetary declarations as the manufacturers, the sellers or the importers are only accountable for this (info). 

Walmart-backed ecommerce giant added that the role of ecommerce platform is limited to providing access to a communication system wherein the manufacturer or seller or dealer or importer posts the information and shares it with the consumers. 

“Since Flipkart does not directly or indirectly sell any products on its platform, and all products are sold by third party sellers who avail the online marketplace services and decided the terms themselves, it was contended that only a bipartite contract existed between the seller and the buyer and accordingly, only the seller could be held liable,” Flipkart said in its statement. 

The ecommerce giant informed that the Ministry of Commerce and Industry earlier said that the ecommerce platform is not accountable for the guarantee or warranty of goods as well as services that are originally sold by the seller.

Add to that, Flipkart also shared that after carrying out an internal probe and identifying that the cited seller violated the policies of the platform, it has blacklisted him and banned him from selling any products on the marketplace.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.