4 min readJul 14, 2026 06:00 PM IST
A consumer commission in Andhra Pradesh has directed Amazon Pay and a seller to refund Rs 25,999 with 12 per cent interest after a buyer who had ordered a smartphone received a cheaper model worth Rs 16,000. It also directed them to pay Rs 35,000 as compensation and litigation costs.
President Gudla Tanuja and members Varri Krishna Murthy and Rahimunnisa Begum of the Visakhapatnam District Consumer Disputes Redressal Commission observed that the online payments processing servicecould not escape liability after charging a processing fee for the transaction.
“The answering Opposite Party being a responsible agency in the field of e-marketplace must ensure before allowing the manufacturer or trader to enlist in their space whether they are genuine traders or manufacturers, so that the public will not fall prey to the fraudulent acts of such manufacturers or traders,” the July 8 order noted.
The complainant placed an order on the online marketplace for Android mobile phone IQ00 Z10 5G (Glacier Silver), 12 GB RAM 256 GB Storage, dated May 18, 2025, paying a sum of Rs 25,999 through Amazon Pay.
On May 20, 2025, she received delivery, and upon unboxing, found some other model worth Rs 16,000 instead of IQ00 Z10 5G. The complainant approached the seller and the online payments processing service through the online customer care team and email, but there was allegedly no response from either party.
The complainant then issued a legal notice to both parties. The notice addressed to the seller was returned unserved as there was no such addressee. Amazon Pay, even after service of notice, neither complied with the terms nor issued any reply; hence she approached the consumer body. It argued that it was only an intermediary under the Information Technology Act and that the seller was solely responsible for supplying the product.
‘Can’t escape liability’
The commission observed that the complainant had paid Rs 25,999 for an iQOO Z10 5G mobile phone but was delivered a cheaper and different model. It noted that despite raising the issue through a legal notice, neither party resolved her grievance.
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The commission also observed that the seller was listed on Amazon Pay’s platform and that it was the platform’s responsibility to ensure genuine sellers were allowed to operate. It held that the online payments processing service cannot escape from its liability by relying on a clause after collecting a processing fee for the transaction.
Holding both the parties guilty of deficiency in service, the commission allowed the complaint, directing them to refund Rs 25,999 with interest at 12 per cent per annum from the date of the payment till realisation and to pay an additional Rs 25,000 as compensation for mental agony, and Rs 10,000 as litigation cost.
Consumer takeaway
The ruling highlights that a payment service associated with an online platform cannot escape liability by stating that it is just an intermediary and the seller was solely responsible for the deficiency in service.
For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Andhra Pradesh helpline: 0866-2551431) or call the National Consumer Helpline at 1915 for assistance.
