Flipkart Ordered To Pay Mumbai Man INR 10,000 For ‘Mental Harassment’ Over iPhone Order Cancellation

SUMMARY

A Mumbai court ruled against Flipkart for cancelling a customer's iPhone order without proper reason. The customer faced mental distress due to the cancellation and Flipkart was ordered to pay ₹10,000 compensation for the inconvenience.

Flipkart tried to claim they were just an intermediary but the court saw through this and penalised them for unfair trade practices. This case highlights the importance of fair treatment for customers by e-commerce platforms.

A Mumbai consumer court has ruled in favor of a customer who experienced "mental harassment" after Flipkart, a leading Indian e-commerce platform, unilaterally cancelled his iPhone order. The court found Flipkart guilty of adopting unfair trade practices and ordered them to pay the customer ₹10,000 in compensation for the mental distress caused.

Order Cancellation and Customer's Ordeal

The customer, identified only as the petitioner, placed an order for an iPhone on Flipkart on July 10, 2022, and made a full payment of ₹39,628 using his credit card. As per the agreed delivery schedule, the phone was supposed to arrive on July 12th. However, Flipkart abruptly cancelled the order six days later, leaving the customer inconvenienced and frustrated.

Flipkart's Defense and Court's Rebuttal

In response to the complaint, Flipkart attempted to absolve itself of responsibility by claiming that it merely functioned as an intermediary platform connecting buyers with sellers. They argued that the actual seller, International Value Retail Private Limited, was responsible for the order fulfillment and cancellation.

However, the consumer court wasn't convinced by Flipkart's argument. The court observed that Flipkart had not only cancelled the order but also encouraged the customer to place a new one at a significantly higher price (₹7,000 more) for the same iPhone model. This pointed towards Flipkart potentially manipulating the situation for their own benefit.

Court's Verdict and Takeaway

The consumer court saw through Flipkart's attempt to shirk responsibility. They deemed the cancellation as intentional, a tactic to potentially generate extra profit by encouraging a repurchase at a higher price. This act constituted a "deficiency in service" and the employment of "unfair and restrictive trade practices" by Flipkart.

While the customer received a full refund for the original order, the court acknowledged the mental stress and inconvenience caused by the unilateral cancellation. To compensate for this, Flipkart was directed to pay the customer ₹10,000 for the mental harassment and an additional ₹3,000 towards the cost incurred during the legal proceedings.

This case serves as a reminder for e-commerce platforms like Flipkart to uphold fair trade practices and customer satisfaction. Unilateral order cancellations without proper justification can lead to legal repercussions and damage customer trust.