Flipkart was found guilty of unfair trade practices by this consumer disputes redressal commission, and it was also ordered to compensate a customer ₹ 10,000 for the psychological distress he experienced after the company canceled his iPhone order.
According to the District Consumer Disputes Redressal Commission, Central Mumbai, the cancellation was made on purpose with the intention of making more money. This amounts to a service deficiency and an unfair and restrictive trade practice adopted by the online platform, as stated in the order passed last month.
On Sunday, the complete order was available.
The commission stated that even though the customer had received a refund, he should still be made whole for the psychological distress and mental anguish he endured as a result of the order’s unilateral cancellation.
The complainant, a resident of Dadar, claims that on July 10, 2022, he placed an order for an iPhone on Flipkart and paid ₹ 39,628 with a credit card.
The phone was scheduled for delivery on July 12, but the e-commerce company canceled his order six days later, according to an SMS he received.
When the company got in touch with him, they informed him that the order had been canceled because the complainant was unavailable despite multiple attempts by their Ekart delivery boy to deliver the product.
The cancellation has not only caused loss, and mental harassment but also subjected him to online fraud, the complainant said.
Flipkart’s delivery partner, Ekart Logistics, was also a party to the complaint but the commission held that it is a delivery partner and there is no consumer and service provider relationship between the complainant and the logistics firm.
Flipkart, in its written response, said the complainant had mistakenly taken it as the seller of the product.
The company said it merely operates as an online platform as an intermediary, and all the products on the platform are sold and supplied by independent third-party sellers.
The seller in this case was International Value Retail Private Limited, and Flipkart had no role to play in the entire transaction entered between the complainant and the seller, it said.
The company claimed that it informed the seller of the complainant’s grievance, the latter said the delivery person had made several attempts to deliver the product to the address but the complainant was unavailable and hence, the order was cancelled by the seller.
The money has been refunded and the dispute exists only between the complainant and the seller, and there is no cause of action against Flipkart, it said.
However, the commission, noted that the order was “unilaterally cancelled” by the e-commerce company that too when the complainant was constantly in touch with it and was assured that his concern was being looked into.
It added that Flipkart had not provided any documentation supporting the seller’s or its repeated attempts at providing the promised level of service.
Flipkart has acknowledged that the order was canceled and that the complainant was asked to place a new order, according to the commission.
This strengthens the complainant’s argument that the order was canceled and he was asked to place a new order because the price of the product had increased by about ₹7,000.
The commission brought up the fact that Flipkart had done this on purpose in order to increase profits, which amounted to a service shortfall and the adoption of unfair and constrictive trade practices on its part.
“Though the complainant has received the refund, he needs to be compensated for the mental harassment and agony suffered by him due to the unilateral cancellation of his order by Flipkart,” it said.
The commission ordered Flipkart to pay ₹ 10,000 towards compensation for the mental harassment and agony suffered by the complainant and ₹ 3,000 towards the cost.
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