A Mumbai consumer court has ordered Amazon to pay ₹40,000, including legal expenses, to a customer for failing to deliver a Rakhi worth ₹100. The directive, issued on February 11 by the District Consumer Disputes Redressal Commission (Mumbai Suburban), gives Amazon 60 days to comply.
The dispute began in August 2019 when the complainant placed an order for a Rakhi, which Amazon later cancelled after the delivery date. Though the ₹100 was refunded, the customer alleged that Amazon had dispatched the product to a defunct courier service, and curiously, shipped it on July 25, even before the order was placed. The customer found similar complaints online and issued a legal notice to Amazon, demanding ₹4.5 lakh as compensation for alleged deficiency in service and unfair trade practices.
The tribunal ruled in the complainant’s favor, stating that Amazon had engaged in deficient service and unfair trade practices. Amazon defended itself by claiming to be merely a third-party facilitator, not responsible for the transaction. However, the court disagreed, noting that Amazon had no evidence it forwarded the ₹100 to the Rakhi seller, Dhanashree Rakhi, implying the money remained with Amazon. Thus, it was held accountable for the failed delivery.
The court emphasized Amazon’s responsibility to vet its sellers and ensure proper service. It added that online marketplaces earn from each customer interaction and must uphold consumer trust. Though the court rejected the ₹4.5 lakh compensation demand due to lack of strong evidence, it acknowledged the emotional distress the complainant experienced from not being able to send the Rakhi to her nephew.
Ultimately, Amazon was directed to pay ₹30,000 in damages and ₹10,000 towards legal costs. The tribunal noted that while Rakhis are readily available in the market, Amazon’s failure to fulfill the order despite taking payment justified compensation.
This case adds to Amazon’s ongoing regulatory troubles in India. Recently, the Central Consumer Protection Authority (CCPA) issued notices to Amazon and other platforms for allegedly selling Pakistani flags and related merchandise. In another instance, the Competition Commission of India (CCI) found Amazon and Flipkart guilty of giving undue preference to certain sellers.
The Rakhi case highlights growing concerns about accountability and transparency in e-commerce, especially when platforms operate as intermediaries but maintain control over transactions.
