Unfair trade practices : Pay Rs 10K relief to consumer, Flipkart told

Rajneesh Lakhanpal

Ludhiana, August 7

In a landmark ruling, the District Consumer Disputes Redressal Commission, Ludhiana, has directed Flipkart to pay Rs 10,000 as costs and refund Rs 7,400 to an aggrieved consumer for indulging in unfair trade practices.

The order was issued by Commission president Sanjeev Batra and member Monika Bhagat, emphasising the need to protect consumer rights in the rapidly expanding e-commerce sector.

The complainant had submitted before the commission that being a plus member of Flipkart, he had ordered an iPhone 13 (128 GB, Blue) during the Big Billion Days sale on September 22, 2022, for Rs 48,119. Despite multiple delivery timeline extensions, including promises for delivery on September 26, October 2, and October 7, the order was ultimately cancelled by Flipkart on October 8.

Subsequently, he was advised by Flipkart’s customer service team to place a new order, leading him to purchase an iPhone 13 of same configuration for Rs 55,519, which was Rs 7,400 more than his original order. Under the compelling circumstances, he placed the fresh order and the same was delivered in the next three days. Hence, he was duped on the pretext of sale, the complainant added. So, he sought compensation for the higher price paid for the second phone, as well as Rs. 15,000 for mental harassment and Rs. 10,000 for litigation expenses.

Flipkart, in its defence, contended that it functions merely as an intermediary platform facilitating transactions between sellers and buyers. The company argued that it was not responsible for the actual sale or delivery of products, which are handled by independent third-party sellers. It maintained that the sale contract existed solely between the buyer and the third-party seller, and not with Flipkart itself.

However, the commission found Flipkart’s defence insufficient, pointing out that it failed to deliver the product as promised and subsequently forced the complainant to purchase the same product at a higher price. The commission emphasised that such conduct amounts to unfair trade practices and price manipulation, violating the Consumer Protection (E-Commerce) Rules, 2020. These rules mandate that e-commerce entities provide transparent information regarding sellers and ensure fair trade practices.

The Commission also noted that Flipkart did not disclose clear information about the seller or logistics partner involved in the transaction, which is a violation of the rules. This omission was significant, especially since Flipkart had charged shipping and packaging fees for the order.