Delhi Consumer Commission Penalizes Amazon for Service Deficiencies & Unfair Trade Practices

Observing that Amazon lacks an adequate grievance redressal mechanism and employs “one-sided oppressive” sale terms, a consumer commission in Delhi has imposed a fine of Rs 35,000 on the online seller and one of its retailers for service deficiencies.

The commission has further mandated Amazon to institute a foolproof and transparent grievance redressal mechanism for customers.

The District Consumer Disputes Redressal Commission (East Delhi) was hearing a complaint concerning the protracted delay of approximately one year and five months in refunding the price of a defective laptop.

The laptop, valued at Rs 77,990, was procured through Amazon Seller Services Private Limited, and sold by retailer Appario Retail Private Limited. The complaint highlighted that the extended delay in securing a refund caused the consumer significant mental distress and harassment.

“This commission firmly believes that opposite party 1 (Amazon), which accepts orders from customers, places orders with third parties, and concludes contracts upon goods delivery, cannot be considered a mere intermediary,” stated the commission, presided over by President S S Malhotra.

The commission, comprising members Rashmi Bansal and Ravi Kumar, considered the evidence before it, noting that the refund was initiated “almost after one year and five months following extensive deliberation by the complainant.”

“It is also evident that OP1 does not possess an appropriate grievance redressal mechanism, and the contact numbers of the relevant individuals are not provided on its website, constituting a deficiency in service on its part. This is further evidenced by the ‘Conditions of Use’ outlined by OP1, which utilize one-sided oppressive contractual terms, amounting to unfair trade practices,” remarked the commission.

Acknowledging that the retailer or second opposite party (OP2) vended a defective product, it was also found liable for service deficiencies.

“OP1 and OP2 are directed to compensate the complainant for their deficient service and unfair trade practices, which have caused mental distress and harassment amounting to Rs 35,000,” decreed the commission in a recent ruling.

Additionally, they were instructed to remit Rs 10,000 as litigation costs.

Concerning future sale transactions, the commission directed Amazon to incorporate provisions for furnishing customers with pick-up item receipts to ensure a secure and safe pickup experience.

Amazon was also tasked with displaying comprehensive details of the officers handling customer grievances on its site and establishing a foolproof transparent grievance redressal mechanism.