A consumer commission has ordered Amazon to refund a TV buyer and pay additional compensation, ruling that e-commerce platforms cannot escape liability for defective products by simply claiming to be a "mere intermediary".
The Ruling: No "intermediary" shield
The District Consumer Disputes Redressal Commission (Suburban Mumbai) found Amazon Seller Services Private Limited (ASSPL) guilty of a "deficiency in service" on January 6. Led by President Pradeep Kadu and member Gauri Kapse, the commission stressed that an online marketplace cannot absolve itself of responsibility when it actively facilitates sales, derives commercial benefit, and handles post-sale consumer engagement.
The commission remarked:
"A consumer purchasing goods online does not have direct access to the manufacturer. The only visible and accessible entity is the online platform. The consumer relies not only on the brand but also on the credibility of the platform".
Case background
In 2018, a Mumbai-based customer purchased a 40-inch Full HD LED TV on Amazon for Rs 16,499. Upon delivery, the unit suffered from poor sound, inferior picture quality, and a non-functional remote control. When Amazon refused a refund and directed the buyer to the manufacturer, the customer approached the commission seeking justice for his "mental agony".
Amazon’s Defense vs The commission’s verdict
Amazon’s legal team argued that the company is merely an "intermediary marketplace" facilitating deals between third-party sellers and buyers. They contended that Amazon neither manufactures nor sells products and, according to its "Conditions of Use," provides only technical support.
However, the commission rejected this defense. It ruled that once a product is sold via Amazon, the platform is responsible for ensuring it is defect-free and serviceable. The court invoked the principle of vicarious liability, stating that since the platform stands in a position of trust and profits from the sale, it must remain accountable.
The final order
The commission has directed Amazon to:
- Refund Rs 16,499 with 6 per cent annual interest (effective from February 2018).
- Pay Rs 10,000 as compensation for mental agony.
- Pay Rs 5,000 toward legal expenses.
