Ecom giant fined ₹27 lakh for sending Chandigarh man counterfeit socks

The state consumer disputes redressal commission has directed e-commerce giant Amazon and another company to pay ₹2 lakh compensation to a city resident, who paid ₹279 for a branded item only to receive a counterfeit product.

The commission also directed the two companies to pay ₹25 lakh to the legal aid account.

Jatin of Sector 9, Chandigarh, filed a case against M/s Amazon Reseller Services Private Limited, Bangalore, and VK Knitting Industries, Delhi. He had bought a pair of “Marc Jacobs” socks for ₹279.3 after getting a hefty discount on Amazon, in February 2023, but received a counterfeit product from a brand named “Marc”, manufactured by VK Knitting.

During the hearing, Amazon contended that innerwear garments were not returnable, adding that the platform only supplied goods and if there is any defect, it had no role and was not liable.

VK Knitting contended that it had never used the word “Marc Jacobs” for its product and thus cannot be held liable for the wrong information provided by Amazon on its website or mobile application.

The commission, however, observed: “Opposite Party no.1 (Amazon) has deliberately and wrongly displayed the luxurious brand name of ‘Marc Jacobs’ but was selling local brand ‘Marc’ under the garb of the said luxurious brand. Apart from it, it has not corrected the same for the last more than four years. The Opposite party no.2 was also well aware of the fact that the socks manufactured by it are being sold... but it never made any attempt to stop selling.”

The commission, while awarding the relief, noted that neither party has placed on record any information as to the extent of sales made to hapless customers, adding, “Apart from it, as stated above, Amazon is deliberately and fearlessly engaged in Dark Patterns, because still it is displaying on its e-commerce website portal brand ‘Marc Jacobs’... which is highly unfair and illegal.”