The District Consumer Disputes Redressal Commission (DCDRC), Mumbai, has directed Amazon to pay ₹40,000—including ₹30,000 in compensation and ₹10,000 in legal costs—to a customer for failing to deliver a ₹100 Rakhi ordered through its platform.

The order followed a complaint filed by a woman who had placed an order for a 'Motu Patlu Kids Rakhi' on August 2, 2019, for her nephew. The delivery was promised between August 8 and 13, but the product was never delivered. Amazon cancelled the order and refunded the ₹100 a day after the promised delivery window, on August 14.

Upon investigation, the Commission found that the product's tracking ID showed a shipment date of July 25—days before the order was even placed—and listed a courier service that was already defunct. Additionally, it emerged that Amazon had not transferred the ₹100 payment to the seller, “Dhanashree Rakhi,” indicating that it had retained control over the transaction.

In its ruling, the consumer forum held Amazon responsible for a deficiency in service and unfair trade practices. It rejected Amazon's defence that it was merely a marketplace intermediary, observing that the platform earns revenue from every consumer interaction and has a duty to verify the status of its sellers.

“The Opposite Party (Amazon) is liable for the consequences of non-delivery of the said product. Not doing so amounts to a deficiency in service,” the order said.

The bench comprising Commission President Samindara R Surve and Member Sameer S Kamble observed that Amazon, having accepted the order and retained the payment, bore the responsibility for its fulfillment. “Although Amazon has acted as a facilitator/intermediary, it had control over the transaction and failed to ensure delivery,” the Commission stated.

The complainant had sought ₹4.5 lakh in compensation, claiming emotional distress due to the non-delivery of the Rakhi. However, the Commission found no substantial evidence to support this claim beyond general assertions of emotional hurt. It noted that such items are readily available in the open market.

Nevertheless, the Commission acknowledged the deficiency in service and directed Amazon to pay ₹40,000 within 60 days. Failing timely payment, Amazon would be liable to pay interest at 6% per annum until full settlement.