Unilateral Cancellation Of Order And Failure To Refund In Source Account, Bangalore District Commission Holds Myntra Liable

Brief Facts:

Mr. Komal Santoshkumar Jain (“Complainant”) placed an order for two gold Lakshmi coins from Myntra.com. Initially priced at Rs. 64,206/-, the Complainant noticed a lower price of Rs. 63,768/- on the coins shortly after placing the order. Despite cancelling the initial order and placing a new one at a lower price, the Complainant did not receive the product by the promised delivery date. The Complainant made several communications with Myntra but didn't receive a satisfactory response. Later, he was informed that the order was cancelled and the amount would be credited as store credit, rather than refunded to the bank account as requested. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission, Bangalore Urban, Karnataka (“District Commission”) and filed a consumer complaint against Myntra.

In response, Myntra contended that it merely acts as an intermediary facilitating transactions between third-party sellers and consumers. Denying any deficiency in service, Myntra maintained that it acted in good faith and accordance with its terms and conditions by refunding the amount as store credit.

Observations by the District Commission:

The District Commission noted that in any E-commerce transaction, the consent of the consumer is paramount. It held that Myntra overstepped this boundary by unilaterally cancelling the Complainant's order without his consent. Moreover, it held that the refund being credited to the Myntra credit account signified a clear attempt by Myntra to coerce the Complainant into further transactions on the Myntra platform, which was contrary to the Complainant's original investment intention.

Furthermore, given the absence of a direct contractual relationship between the Complainant and the seller, the District Commission held that Myntra, as the E-commerce intermediary, bears sole responsibility for any issues arising during the transaction. The unilateral cancellation of the order without the complainant's knowledge or consent raised questions regarding the integrity of Myntra's operations.

Consequently, the District Commission held that the Complainant was entitled to either the delivery of the ordered gold coins or a refund of the amount of Rs. 63,768/- with an interest rate of 10%. Myntra was further directed to pay Rs. 20,000/- towards compensation and Rs. 5,000/- towards litigation costs incurred by the Complainant. It was also directed to deposit Rs. 20,000/- as punitive damages in the consumer welfare fund.