Consumer court slaps Rs 45,000 fine on Amazon for delayed refund on defective product

Commission President SS Malhotra and members Rashmi Bansal and Ravi Kumar emphasised that Amazon was obligated to ensure the sale of authentic, defect-free products and expedite the replacement of faulty items and issuance of refunds.

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  • Storyboard18,
| March 27, 2024 , 12:33 pm
Prior to 2013, Publicis Groupe handled Amazon’s media account. (Representative Image: Christian Wiediger via Unsplash)
Prior to 2013, Publicis Groupe handled Amazon’s media account. (Representative Image: Christian Wiediger via Unsplash)

Commission President SS Malhotra and members Rashmi Bansal and Ravi Kumar emphasised that Amazon was obligated to ensure the sale of authentic, defect-free products and expedite the replacement of faulty items and issuance of refunds.

The Delhi East District Consumer Disputes Redressal Commission has levied a fine of Rs. 45,000 on Amazon and a third-party retailer for the prolonged delay of approximately eighteen months in reimbursing a customer for a defective laptop purchase, as per the case titled Anil Kumar and Anr. v Amazon Seller Services Private Limited and Anr.

Commission President SS Malhotra along with members Rashmi Bansal and Ravi Kumar concluded that Amazon is obligated to guarantee the sale of authentic, defect-free merchandise and to promptly replace defective products and provide refunds.

The Commission was addressing a grievance where it was claimed that Amazon, following the retrieval of a defective laptop it had supplied, took a period of one year and five months to process a refund. The customer-complainant contended that the extensive delay in reimbursing the sum constituted a lapse in service quality and therefore requested compensation.

Furthermore, the complainant highlighted that Amazon fails to provide any receipt or acknowledgment slip upon picking up items for return.

The Commission ordered Amazon and Appario Retail to compensate the complainant with a sum of Rs. 35,000 for inadequate service and unethical business practices, which resulted in mental distress and inconvenience for the complainant. Additionally, they were instructed to cover the litigation expenses with a payment of Rs 10,000.

Furthermore, the Commission issued a specific directive to Amazon, mandating the provision of receipts for items picked up for return or replacement. Additionally, it instructed Amazon to publish comprehensive information on its website regarding the officers responsible for addressing customer grievances and to establish a transparent and foolproof mechanism for addressing such grievances.

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