Amazon Fined ₹18,000 and Ordered to Refund ₹40,000 for Selling Hacked Phone

A consumer court has ordered Amazon Retail India to refund ₹40,325 to a woman whose personal information was compromised after she bought a “hacked phone.” In addition to the refund, Amazon has been fined ₹18,000—₹10,000 for the woman’s mental distress and ₹8,000 for legal costs.

What Happened?

The woman, Sumita Das, from Chandigarh, purchased a smartphone from Amazon’s website. After buying the device, she experienced fraud when hackers accessed her personal information and made unauthorized purchases using her Amazon account. In September 2023, they also hacked her ICICI Bank credit card and email. Although Das reported the suspicious activity to Amazon, the company did not cancel the transactions or provide a quick solution.

Despite Amazon’s initial promise to refund the fraudulent charges, Das stated she had not yet received any money.

Amazon’s Response

In response to the consumer court, Amazon claimed that they canceled the fraudulent orders and provided “proper and efficient assistance” to Das. They stated that they helped her secure her account and canceled all orders to prevent further issues.

However, the court pointed out that online platforms should thoroughly check products before delivery and noted that Amazon did not act quickly after being informed about the suspicious activities. As a result, the court ruled in favor of Das.