The District Consumer Disputes Redressal Commission (DCDRC) in Mumbai recently directed Amazon to pay ₹40,000 (including compensation and legal costs) for failing to deliver a Rakhi worth ₹100 to a customer. .Amazon had cancelled the order and refunded the ₹100 paid for placing the order, a day after its scheduled date of delivery. However, the DCDRC ordered it to pay additional compensation after taking note of the customer's complaint that the delivery of the Rakhi was entrusted to a courier service that had been defunct. The commission further found that the ₹100 was never sent by Amazon to the seller who advertised the Rakhi product on its platform. It, therefore, ruled that Amazon was responsible for delivering the product and failed to do so. “The online market place (Amazon/ Opposite Party) earns the revenue each time a consumer clicks on its website … It is the duty of the Opposite Party that it should verify the whereabouts as well as the status of the seller before accepting the order of the respective product … It is liable for the consequence of non-delivery of the said product and not doing so amounts to deficiency in service on its part," the ruling said. .Amazon was thus liable for a deficiency of service and unfair trade practice, ruled the consumer court coram of President, Samindara R Surve and Member Sameer S Kamble."We therefore observe that although (Amazon) has acted as facilitator/ intermediatory, the amount of the said Rakhi was with it and hence responsible for its timely delivery. And non doing it has committed deficiency in service and adopted unfair trade practice," it held. .It proceeded to direct Amazon to pay ₹30,000 as compensation and ₹10,000 as legal costs to the customer within 60 days. If not paid on time, an interest at 6 per cent per annum would apply until the payment is made, the consumer court added..The ruling was passed on a complaint by a woman who had ordered a 'Motu Patlu Kids Rakhi' worth ₹100 on August 2, 2019 for her nephew through Amazon's website. The delivery of the product was promised between August 8–13, 2019. However, the product was never delivered. Moreover, the tracking ID showed that the product was shipped on July 25, before the order was even placed. Further, the delivery was shown to be entrusted to a courier company that had already shut down..Amazon eventually cancelled the order and refunded the ₹100 paid for the Rakhi by the customer to her bank account on August 14, 2019. The customer later found similar complaints from others and issued a legal notice, demanding compensation. When the demands were not met, she approached the consumer court for relief. She sought ₹4.5 lakhs as compensation..Amazon opposed the claim, arguing that it was just an online marketplace and not responsible for third-party sellers. However, the consumer commission noted that Amazon accepted the order and refunded the money without showing that it had ever paid the seller, “Dhanashree Rakhi.” The same indicated that Amazon itself was responsible for the transaction and not just a facilitator, the commission added. .Nevertheless, the commission declined to order ₹4.5 lakhs as compensation as sought by the customer and ordered that Amazon pay only ₹30,000 as compensation along with ₹10,000 as costs for pursuing the case. "The Complainant has not produced any cogent evidence apart for stating that the said Rakhi was ordered for her brother’s son and non delivery thereof caused emotional hurt and harassment to her. 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 case for deficiency in service, she is entitled for the reasonable damages," the commission reasoned. .[Read Order]
The District Consumer Disputes Redressal Commission (DCDRC) in Mumbai recently directed Amazon to pay ₹40,000 (including compensation and legal costs) for failing to deliver a Rakhi worth ₹100 to a customer. .Amazon had cancelled the order and refunded the ₹100 paid for placing the order, a day after its scheduled date of delivery. However, the DCDRC ordered it to pay additional compensation after taking note of the customer's complaint that the delivery of the Rakhi was entrusted to a courier service that had been defunct. The commission further found that the ₹100 was never sent by Amazon to the seller who advertised the Rakhi product on its platform. It, therefore, ruled that Amazon was responsible for delivering the product and failed to do so. “The online market place (Amazon/ Opposite Party) earns the revenue each time a consumer clicks on its website … It is the duty of the Opposite Party that it should verify the whereabouts as well as the status of the seller before accepting the order of the respective product … It is liable for the consequence of non-delivery of the said product and not doing so amounts to deficiency in service on its part," the ruling said. .Amazon was thus liable for a deficiency of service and unfair trade practice, ruled the consumer court coram of President, Samindara R Surve and Member Sameer S Kamble."We therefore observe that although (Amazon) has acted as facilitator/ intermediatory, the amount of the said Rakhi was with it and hence responsible for its timely delivery. And non doing it has committed deficiency in service and adopted unfair trade practice," it held. .It proceeded to direct Amazon to pay ₹30,000 as compensation and ₹10,000 as legal costs to the customer within 60 days. If not paid on time, an interest at 6 per cent per annum would apply until the payment is made, the consumer court added..The ruling was passed on a complaint by a woman who had ordered a 'Motu Patlu Kids Rakhi' worth ₹100 on August 2, 2019 for her nephew through Amazon's website. The delivery of the product was promised between August 8–13, 2019. However, the product was never delivered. Moreover, the tracking ID showed that the product was shipped on July 25, before the order was even placed. Further, the delivery was shown to be entrusted to a courier company that had already shut down..Amazon eventually cancelled the order and refunded the ₹100 paid for the Rakhi by the customer to her bank account on August 14, 2019. The customer later found similar complaints from others and issued a legal notice, demanding compensation. When the demands were not met, she approached the consumer court for relief. She sought ₹4.5 lakhs as compensation..Amazon opposed the claim, arguing that it was just an online marketplace and not responsible for third-party sellers. However, the consumer commission noted that Amazon accepted the order and refunded the money without showing that it had ever paid the seller, “Dhanashree Rakhi.” The same indicated that Amazon itself was responsible for the transaction and not just a facilitator, the commission added. .Nevertheless, the commission declined to order ₹4.5 lakhs as compensation as sought by the customer and ordered that Amazon pay only ₹30,000 as compensation along with ₹10,000 as costs for pursuing the case. "The Complainant has not produced any cogent evidence apart for stating that the said Rakhi was ordered for her brother’s son and non delivery thereof caused emotional hurt and harassment to her. 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 case for deficiency in service, she is entitled for the reasonable damages," the commission reasoned. .[Read Order]
