Amazon Slapped With Rs 45,000 Penalty For Not Delivering Rs 190 Laptop; User Files Legal Case & Wins

Amazon has found itself in a sticky situation – the e-commerce giant has been ordered to pay Rs. 40,000 to a law student who was promised a laptop for Rs. 190 only, but wasnt delivered.

Amazon has been ordered by the Odisha State Consumer Dispute Redressal Commission (Commission) to pay an aggrieved law student a sum of as much as Rs. 40000 as compensation. Also, the online e-commerce platform has also been told to pay Rs. 5000 as costs.

Law Student Offered Laptop At Rs. 190 On Amazon; Ordered Cancelled Soon?

It all started in 2014, when the customer, Supriyo Ranjan Mahapatra, a law student, found an offer on Amazon, where a laptop was being sold at Rs. 190, while its original cost was Rs. 23,499. However, after two hours, he was contacted by the Amazon Customer Care Service Department and was notified that the order was canceled due to a price recession issue.

The student then sent a legal notice to Amazon. However, after the notice was sent, there was no response and he went on to file a complaint before the District Forum seeking Rs. 50,000 for mental agony and Rs. 10,000 towards the cost of litigation.

He said, “I did not hear from Amazon for close to three weeks after the issue cropped up and therefore in 2015 I sent a legal notice mentioning all the trouble that I had to ensure because of this sudden unilateral cancellation.”

Amazon States Not Party To Contract; Commission Rejects

After this, Amazon’s position was that the deal was between a third party seller and the customer on their platform and that Amazon was not a party to their contract. 

However, the Commission has rejected this contention and found the eCommerce platform to pay damages for a breach of contract. In fact, the Commission stated that Amazon is responsible for paying the damages for a breach of contract and cannot go back on its promise once the contract is complete. 

As per the Commission, “When there is advertisement made for offer placed by the OP (Amazon) who is a reputed Online Shopping Website and made offer as per the materials available on record and the complainant placed the order and same has been confirmed, the agreement is complete between the parties.”

The Commission hence ordered Amazon to pay the student a sum of Rs. 30,000 for the mental agony and harassment caused to him, Rs. 10,000 towards punitive damages, and Rs. 5,000 towards the cost of litigation.