Amazon, two others fined for unfair trade practices, poor service

The commission found that the used phone was sold to the couple fraudulently on Amazon as new and thus a total fine of Rs 2.1 lakh was slapped on the companies.
Amazon
Amazon (File photo | AP)

MADURAI : The District Consumer Disputes Redressal Commission in Madurai directed three firms to pay a compensation of Rs 2.1 lakh to a couple due to unfair trade practices and poor service.

The commission directed Amazon, Samsung and Divine India to pay compensation for causing mental agony to the couple.

The couple purchased a Samsung phone in January 2021 from Amazon at Rs 59,000. In December 2021, they received pop-up messages on the phone from Flipkart, asking them to make necessary payments to upgrade the phone, with a warning that the phone would be locked if they failed to make the payments.

The couple contacted Amazon and Flipkart customer care, who remained non-committal and advised the couple to approach a Samsung showroom near them.

Meanwhile, the phone was locked in February 2022, leaving the couple in a fix. Though they visited a Samsung showroom in Madurai, the latter merely informed them that the phone was locked and asked them to approach Amazon. After being made to run from pillar to post, the couple sent legal notices to the firms, including the seller- Divine India. However, when the case was heard by the Consumer Forum’s president M Piraviperumal and member P Shanmugapriya, the seller remained ex-parte, while the other three companies-Amazon, Flipkart and Samsung- denied any responsibility in the matter.

It was later revealed that the phone was previously purchased by someone under Flipkart’s and Amazon’s 'Smart Upgrade Plan', floated in 2020.

Under the plan, customers could buy a phone at 70% of its value, and 12 months later, they could either return the phone or keep it by paying the full amount, failing which the phone would be locked. The commission found that the used phone was sold to the couple fraudulently on Amazon as new. Holding that the companies had concealed the facts to escape liability and the complainants were made to suffer, the commission directed the companies- Amazon, Samsung and Divine India- to take back the phone and refund the amount with interest.

It also directed the company to pay Rs 1 lakh as compensation for unfair trade practice and deficiency in service, Rs 10,000 towards complaint costs and Rs 1 lakh for causing mental agony to the couple.

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