Consumer Court imposes ₹45,000 penalty on Amazon for delay in refund for faulty product

The Delhi East District Consumer Disputes Redressal Commission recently imposed a penalty of ₹45,000 on Amazon and a retailer for taking nearly a year and a half to issue a refund for a faulty laptop [Anil Kumar and Anr. v Amazon Seller Services Private Limited and Anr.]. .Commission President SS Malhotra and members Rashmi Bansal and Ravi Kumar held that it was Amazon's duty to ensure sale of genuine, defect-free products and to promptly replace faulty items and issue refunds.."As per its terms and conditions, it is admitted position of OP1 that the contract with OP1 concludes, when the product shipped and confirmation email made to the customer, which implies that its OP1’s duty to ensure genuine and defect free item be sold and further if return is made then the same has to be picked up by it and generate refund within reasonable time," the order dated February 27 stated..The Commission was hearing a complaint alleging that after taking back a faulty laptop that it delivered, Amazon took a year and five months to issue a refund. The customer-complainant said that the delay in issuing the refund, amounted to deficiency in service and sought compensation. Additionally, the complainant pointed out that when Amazon picks up orders that are to be returned, it does not issue any receipt or slip to confirm the pick-up..The written statement by Amazon was filed beyond the statutory period and therefore was ordered not to be read for the purpose of its defense. It was also denied an opportunity to file evidence. Appario Retail chose not to appear despite service of notice and was proceeded against ex-parte..The Commission, based on documents on record, noted that the laptop was delivered on October 29, 2021 and was picked up ten days later despite a return request being made on the day of the delivery. It also took note of an email from December 2021 where Amazon informed the complainant that the pick up had not been confirmed. "The emails dated 11.12.2021 of OP1 even informed the complainant that it has no information about the ‘product pick up’ confirmation, which obviously must have given lot of tension to the complainant as upto one month, he has been informed that his pickup was not confirmed," the order recorded..Based on Amazon's Conditions of Use and the Conditions of Sale between Seller and Customer, the Commission concluded that Amazon was the principal seller and Appario was its agent.Further, the Commission noted that an email relied on by Amazon stated that the product had been picked up as per the snapshot attached. This, the Commission held, proved the allegations of the complainant towards a deficient pick up mechanism."From this it can easily be made out that had the snapshot of picking up the product was not attached, the OP1 may not have accepted that the product has been picked up by their pick-up person or right person," the Commission observed..Accordingly, the Commission directed Amazon and Appario Retail to pay ₹35,000 to the complainant towards compensation for deficient service and unfair trade practice that caused mental agony and harassment to the complainant. It also directed a payment of ₹10,000 towards cost of litigation.Further, the Commission specifically directed Amazon to make a provision for handing over receipts for items picked up to be returned or replaced.In addition to this, it also directed Amazon to display on its website, complete details of officers dealing with the grievances of customers and to provide a fool proof, transparent grievance redressal mechanism..[Read Order]