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E-com site fined ₹18,000 for delaying Chandigarh resident’s refund
The Chandigarh District Consumer Disputes Redressal Commission-1, headed by president Pawanjit Singh, also directed Amazon to refund ₹40,325 to the complainant
Terming them guilty of delaying a Sector-12 resident’s refund after several orders were placed by hackers using her Amazon account, the Chandigarh District Consumer Disputes Redressal Commission-1 has directed Amazon India to pay ₹10,000 as compensation for causing mental agony and harassment to the complainant.
The commission has also directed the company to pay ₹8,000 towards litigation costs.
The commission, headed by president Pawanjit Singh, also directed Amazon to refund ₹40,325 to the complainant, along with interest at the rate of 9% per annum from the date of filing of this complaint.
Complainant Samita Das, 47, had filed a complaint against Amazon Retail India Private Limited, through its managing director, Ground Floor, Eros Plaza, Eros Corporate Centre, Nehru Place, New Delhi.
The complainant said her mobile phone was hacked by fraudsters. Consequently, her e-mail ID and ICICI Bank credit card were also hacked, and misused by the fraudsters on September 9, 2023.
The fraudsters placed multiple orders online for the purchase of articles through her Amazon account.
Initially apprehending suspicious activity, the orders were cancelled and she was informed about this on her email ID at 01.12 pm on September 19, 2023.
However, certain other orders placed by fraudsters thereafter were entertained by Amazon without verifying the credentials and payment was made through “Amazon Pay Later”.
Further orders were also placed by fraudsters for purchase of articles and payment was made using her ICICI Bank credit card.
Subsequently, the orders were cancelled and a refund was assured to her. But to date, the amount has not been refunded, the complainant alleged. She then moved the consumer commission, claiming ₹40,325.
In its defence, Amazon India said after the complainant’s grievance of her account being hacked was informed to them, they immediately checked internally and assisted the complainant with sanitising/suppressing her account and ensuring that all the orders were cancelled to avoid any further issues.
It was further stated that the payment of consideration towards the multiple orders made to the seller is managed in the nodal account set up in accordance with the RBI guidelines.
This notification of the RBI contains directions mandating the opening and operation of nodal accounts, not maintained, or operated by intermediaries, for facilitating the collection of payments from customers on behalf of the seller. It is hence clarified that the payment made into the nodal account is not a payment made to Amazon.
The online platform said the nodal account is maintained and audited by a bank recognised for such purpose by the RBI and not by them.
In its order, the commission stated that it is a general practice of online platforms that particularly a product before collection at the time of return is verified thoroughly by the collecting agent, and the same is collected only after the same is found to be the same as the item delivered and in case of any difference, the product is never collected by the collecting agent.
“We are of the considered opinion that all the transactions of sale, collection of amount, ensuring delivery of a product, processing cancellation request, return request and refund of amount are controlled and managed by Amazon only. But in the present case, the act of Amazon for not properly handle the situation despite having complete knowledge of the suspicious activity and not taking prompt action on the complaint of the complainant and ignoring the genuine repeated requests of the complainant, and forcing her to indulge in the present litigation proves deficiency in service on their part,” ruled Singh.
