Amazon Ordered To Refund Rs 40,325 For Selling Hacked Phone, Fined For Causing Mental Distress

Amazon insisted it had handled the situation efficiently, claiming all necessary steps were taken to prevent further damage.

The consumer court found Amazon at fault for not acting swiftly enough to resolve the issue.

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A Chandigarh woman has successfully won a case against Amazon after a consumer court ordered the company to refund her Rs 40,325 for selling a compromised phone that led to unauthorised purchases and data breaches. The District Consumer Disputes Redressal Commission also imposed a fine of Rs 18,000 on Amazon, including Rs 10,000 for mental distress and Rs 8,000 to cover litigation expenses.

What Went Down

Sumita Das, a resident of Sector 12 in Chandigarh, purchased a smartphone via Amazon’s platform, but the device turned out to be hacked, exposing her to fraud. In September 2023, fraudsters gained access to her personal data, resulting in unauthorised purchases through her Amazon account. Das also reported breaches involving her ICICI Bank credit card and email account. 

Despite her efforts to alert Amazon and request the cancellation of fraudulent transactions, she claimed that the company did not act promptly or return the money lost from the unauthorised purchases. While Amazon initially promised to cancel the fraudulent orders and offer refunds, the woman stated that she never received her refund.

Amazon's Response

In its defence, Amazon and Amazon Pay Later said they had taken swift action by cancelling the fraudulent orders and providing assistance to help secure Das' account. The company insisted it had handled the situation efficiently, claiming all necessary steps were taken to prevent further damage.

Court's Decision

The consumer court, however, found Amazon at fault for not acting swiftly enough to resolve the issue and failing to verify the phone’s condition before selling it. The court emphasised that online retailers are responsible for verifying the authenticity of products and protecting their customers from such issues.

The judgment ruled in favour of Das, ordering a full refund and imposing a fine for her mental suffering and legal costs.