Flipkart, the ecommerce giant, has been held guilty of unfair trade practice by the District Consumer Disputes Redressal Commission in Mumbai.
Flipkart’s “no return policy” results INR 4,641 loss
The commission’s decision came after a consumer complaint about receiving inferior-quality food products from Flipkart, which cited its “no return policy” and refused to replace the items. The consumer had purchased 13 containers of a health drink mix from the e-commerce platform in October 2023 for INR 4,641. However, the products were found to be of abnormal color and texture, lacked a QR code on the label, and were likely fake.
Continue Exploring: Tata Group launches Neu Flash q-commerce delivery amid intensifying competition
Meanwhile, the commission ordered Flipkart and the seller to refund the product’s cost with interest and pay INR 10,000 as compensation to the complainant. This is not the first time Flipkart has faced action for unfair trade practices. In March this year, a consumer disputes redressal commission in Mumbai ordered the company to pay INR 10,000 to a customer for cancelling his iPhone order.
CCI finds Amazon and Flipkart guilty
Reportedly, Flipkart and its rival Amazon were recently found guilty of violating competition laws by the Competition Commission of India. Meanwhile, the Enforcement Directorate (ED) is also investigating the two ecommerce players for violation of foreign direct investment laws.
Continue Exploring: Tata Consumer foresees continued volume growth, sees food inflation as ‘short-term blip’
On the financial front, Flipkart continues to be a loss-making entity. Flipkart’s marketplace arm, Flipkart Internet, reported a 41% year-on-year decline in its net loss to INR 2,358 Cr in the financial year 2023-24. Operating revenue zoomed 21% to INR 17,907.3 Cr.
Amid all these challenges, Flipkart also launched its quick commerce service earlier this year due to the rising popularity of the segment. The company has been working to enhance its customer experience, with initiatives like same-day delivery services in 20 major Indian cities.
Further, Flipkart’s parent Walmart reported 8% year-on-year growth in its international sales in Q3 FY25, driven by the ecommerce company’s solid sales growth during its flagship sale, The Big Billion Days.
