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The District Consumer Disputes Redressal Commission in Central Mumbai has ruled against Flipkart for adopting unfair trade practices. The commission found Flipkart guilty of intentionally cancelling a customer’s iPhone order to make extra profit, causing mental harassment and agony to the customer.
Background
The commission highlighted Flipkart’s intentional cancellation of the customer’s order to gain extra profit. Despite receiving a refund, the customer suffered mental agony due to the cancellation, thus, prompting the commission to demand compensation.
Customer’s Complaint
The complainant, a resident of Dadar, ordered an iPhone from Flipkart paying Rs 39,628 via credit card. Despite assurances of timely delivery, however, he received an SMS six days later, notifying him of the cancellation. Subsequently, the customer expressed anguish, stating that the cancellation not only caused financial loss but also subjected him to mental harassment and potential online fraud.
Flipkart’s Defense
In response to the complaint, Flipkart argued that it merely serves as an intermediary platform, with independent third-party sellers responsible for product sales and delivery. Flipkart asserted that it have promptly informed the seller, International Value Retail Private Limited, about the customer’s grievance. Additionally, Flipkart asserted that the cancellation decision was made by the seller, not by Flipkart itself.
Forum’s Decision
The commission dismissed Flipkart’s defense, emphasizing the unilateral cancellation and the lack of evidence supporting multiple delivery attempts. The commission concluded that Flipkart’s intentional cancellation to capitalize on the increased product cost amounted to unfair trade practices and deficiency in service. Despite the customer receiving a refund, nevertheless, the commission deemed it necessary to compensate the customer for the mental harassment and agony.
The commission ordered Flipkart to pay Rs 10,000 towards compensation for the mental harassment and agony suffered by the customer. Additionally, Flipkart was directed to cover Rs 3,000 towards the costs incurred by the customer.
Conclusion
This ruling serves as a precedent for holding e-commerce platforms accountable for unfair trade practices. It underscores the significance of ensuring transparency, accountability, and consumer satisfaction in online transactions. Flipkart’s intentional cancellation of the customer’s order for profit highlights the need for stricter regulations and enforcement mechanisms to protect consumers’ rights in the digital marketplace.
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