Consumer Commission Holds Amazon India Liable for Defective TV Sale, Orders Refund and Compensation

Mumbai:
In a significant ruling reinforcing consumer rights in the digital marketplace, the district consumer commission has held Amazon India liable for deficiency in service for the sale of a defective LED television, stating that e-commerce platforms cannot absolve themselves of responsibility by claiming to be mere intermediaries.

The commission ruled that Amazon Seller Services Private Limited (ASSPL), having hosted, promoted, and facilitated the sale of the product, carries a statutory and fiduciary obligation to ensure that consumers receive defect-free goods along with effective post-sale support.

E-commerce platforms have accountability

In its order, the commission observed that once a product is sold through an online platform, the platform assumes responsibility for ensuring that the product is serviceable and free from defects. It further noted that the principle of vicarious liability applies, as e-commerce platforms derive commercial benefit from such transactions and operate in a position of trust with consumers.

Rejecting Amazon’s argument that it only provides technical support and does not sell or manufacture products, the commission held that such disclaimers cannot override consumer protection laws.

Case details

The complaint was filed by Goregaon resident T R Dhariwal, who purchased an LED TV worth Rs 16,499 through Amazon on February 14, 2018. According to the complainant, the television was defective from the outset.

Dhariwal made multiple complaints through emails and phone calls between February and April 2018. Despite initial assurances of a replacement, neither a replacement nor a refund was provided. Eventually, on April 16, 2018, he was advised to approach the manufacturer directly, prompting him to seek legal remedy before the consumer commission.

Commission’s order

After examining the case, the commission directed Amazon India to:

Refund the full cost of the TV along with 6% interest

Pay Rs 15,000 as compensation for mental harassment and inconvenience

Accept the return of the defective TV from the complainant after payment is made

The commission clarified that consumer platforms cannot distance themselves from grievances arising out of products sold through their portals, especially when complaints remain unresolved despite repeated follow-ups.

Broader implications

The ruling is expected to have wider implications for the e-commerce industry, reinforcing that online marketplaces must ensure accountability, transparency, and effective grievance redressal mechanisms for consumers.