Amazon India penalized for selling hacked phone to customer
What's the story
The District Consumer Disputes Redressal Commission has ordered Amazon Retail India to refund a woman ₹40,325, for selling her a compromised smartphone. The device was allegedly used to access her personal data and make unauthorized purchases. The company has also been fined ₹18,000 - ₹10,000 as compensation for mental distress and harassment caused to the complainant, and ₹8,000 toward litigation costs.
Incident details
Complainant's ordeal with compromised device
The complainant, Sumita Das, a Sector 12 resident of Chandigarh, bought the smartphone from Amazon. In September 2023, fraudsters allegedly accessed her personal details via the compromised device and made unauthorized purchases from her Amazon account. Das also alleged that her ICICI Bank credit card and email were hacked through the same phone. Even after reporting the matter to Amazon, she claims the company neither canceled the transactions nor provided timely assistance.
Court ruling
Amazon's response and court's observations
Responding to the allegations, both Amazon India and Amazon Pay Later claimed they had canceled the fraudulent orders and provided "proper and efficient assistance" to Das. However, the consumer court observed that online platforms' collecting agents generally "thoroughly verify" a product before delivery. The court ruled in Das's favor, saying Amazon failed to "act promptly" despite being informed about the suspicious activity on her account.
Criticism
Court criticizes Amazon's handling of fraudulent orders
The court also slammed Amazon for processing some orders placed by the fraudsters without verifying their credentials. These orders were later canceled and a refund was promised by Amazon, but Das claims she hasn't received this refund yet. The commission noted that online platforms generally verify products thoroughly before collecting returns, but in this case, Amazon did not act promptly despite knowing about the suspicious activity.