Amazon penalised for selling locally made socks under luxury brand’s name in Chandigarh

The complainant, Jatin Bansal, of Sector 9, Chandigarh, filed the case against Amazon Reseller Services Private Limited, Bengaluru, and V K Knitting Industries, Delhi. He said he ordered a pair of ‘Marc Jacobs’ socks for Rs 279.30 after getting a hefty discount on Amazon on February 22, 2023. On February 25, 2023, he received a counterfeit product from a brand named ‘Marc’, manufactured by V K Knitting.

The Bench Justice Raj Shekhar Attri, and Rajesh K Arya (member) held, “Amazon is deliberately and fearlessly engaged in dark patterns, because still it is displaying on its e-commerce website portal brand “Marc Jacobs” and delivering a product under the local brand “MARC” manufactured by V K Knitting Industries, which is highly unfair and illegal.”

The Commission further ordered that a copy of the order be sent to the Secretary to Government of India, Ministry of Consumer Affairs, Department of Food and Public Distribution, New Delhi, requesting appropriate steps/action against Amazon.

Bansal, in his complaint, also stated that he tried his level best to return the product but there was no option to return or replace it. Amazon, in its reply, submitted that this Commission lacks pecuniary jurisdiction. While relying upon its refund/return policy, it contended that innerwear garments are not returnable. It submitted that it is only the supplier of goods, and if there is any defect in the said goods, it has no role and is not liable. The Commission, however, said if a product is different or defective, Amazon has a clear policy of refunding or replacing it.

V K Knitting Industries submitted that Amazon falsely, wrongly, and illegally depicted and displayed the brand ‘Marc Jacobs’ without its instructions. Even though Amazon was asked by sending various emails to correct the website by showing the correct brand as ‘Marc’ instead of ‘Marc Jacobs,’ it continued to do so to this day, the clothing company said.

The Commission held, “Amazon has deliberately and wrongly displayed the luxurious brand name of ‘Marc Jacobs’ but was selling local brand “Marc” under the garb of the said luxurious brand. Apart from it, Amazon has not corrected the same for the last more than four years, from its e-commerce portal, in spite of various emails having been sent by V K Knitting Industries in the matter.”

The Commission also said V K Knitting Industries was well aware that Amazon was selling the socks manufactured by it under the luxurious brand name but never attempted to stop the sale.