In a significant ruling, the District Consumer Disputes Redressal Forum, Malappuram has ordered e-commerce giant Amazon India and seller Appario Retail Pvt Ltd to refund a customer for a defective product and pay compensation for deficiency in service and unfair trade practices.
Case Background
The case (Complaint Case No. CC/493/2023) was filed by Bineesh A, a resident of Malappuram, against Amazon India Pvt Ltd and Appario Retail Pvt Ltd. On July 13, 2023, the complainant ordered a Juke bar 9750 Pro 5.1.2 Surround Dolby Atmos Sound bar with sub-woofer through Amazon for ₹18,999. Upon delivery and installation, the product was found to have very low sound clarity, prompting the complainant to return it.
Legal Issues and Arguments
The primary issues in the case revolved around:
1. Deficiency in service and unfair trade practices by the e-commerce platform and seller
2. Responsibility of Amazon as an intermediary in the transaction
3. Proof of product return and refund eligibility
Amazon India, in its defense, claimed to be merely an intermediary providing an e-commerce marketplace. They argued that the transaction was between the complainant and the seller, Appario Retail Pvt Ltd, and that Amazon was not liable for claims arising from products sold by third-party sellers.
Important Observations
The court made several noteworthy observations:
1. On Amazon’s role: “From the version of opposite party No.1, it is clear that they know the entire complaint of complainant very well. They may be only an intermediary between the seller and the buyer, but they very well knew the entire transaction between the seller and buyer.”
2. On the defective product: “The product is defective and that is admitted by opposite party No.1.”
3. On the evidence: “The allegations against opposite parties are proved by the unchallenged evidence of complainant. There is no contra evidence in this matter.”
The court also noted that if the ordered amount is not paid within 30 days from the receipt of the order copy, the opposite parties would be liable to pay interest at 12% per annum until realization.
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Court’s Decision
The Consumer Forum, comprising President Mr. Mohandasan K, and Members Mr. Mohamed Ismayil CV and Mrs. Preethi Sivaraman C, ruled in favor of the complainant. The court found both Amazon India and Appario Retail Pvt Ltd deficient in service and guilty of unfair trade practices.
Key points of the judgment include:
1. The opposite parties were directed to refund ₹18,999, the cost of the product, to the complainant.
2. A compensation of ₹15,000 was awarded to the complainant for mental agony, physical hardships, and sufferings caused by the deficiency in service.
3. The opposite parties were also ordered to pay ₹2,000 as cost of proceedings.
