Online retailers must stop selling fakes, introduce voluntary product recall and pay compensation to buyers
Tanvi Shetty 25 May 2017
An online petition by Pritee Shah, consumer activist and director of Ahmedabad-based Consumer Education and Research Centre (CERC), one of India’s largest consumer organisations, has turned the spotlight on fake products being allowed to be sold by large multinational companies such as Amazon. The petition points out how they fail to observe international norms of recall and compensation when dealing with complaints in India.
 
According to Ms Shah, a consumer purchased Lakme Eyeconic Kajal (pack of two) from Amazon this March. A slight variation in the product she received, as against her previous experience, made her suspicious. On writing to Hindustan Unilever Ltd (HUL), the manufacturer of Lakme Eyeconic Kajal, she discovered the product delivered to her from Amazon was a counterfeit. When she asked for a replacement, Amazon obliged and pointed fingers at the outsourced delivery agent for the fake product delivered. The seller, Sublime , “also admitted that the product it has sold/ sent is fake”, she says.
 
Subline had sold 340 packs of Lakme Eyekonic Kajal through Amazon, of which in only seven cases customers had demanded product replacement. The other customers were evidently unaware of the substitute product delivered to them. 
 
“Isn’t Amazon responsible for the products being sold on their portal? It is also possible that the fakes could contain ingredients hazardous to health – after all, it is a cosmetic product. Even though the delivery of the goods and services is outsourced by the e-commerce portal, isn't it Amazon’s duty to safeguard their customers from such counterfeit products? Consumers enter into a purchase agreement with Amazon and not the outsourced third party. Shouldn’t the counterfeit products in circulation, which could have harmful effects on the customers, be recalled?” asks the petition.  
 
It further says, “On being questioned,  Amazon says that they are just an online portal providing a service of bringing buyers and customers, spread over a wide area, together. Neither do they buy the products sold on their site nor do they hold inventory. Moreover, they claim to have a well-placed system for the vetting process of these delivery agents. Clearly these systems are not working, as sellers continue to sell counterfeit or fake products with impunity through their portal, without any penalties or consequences.” 
 
On its website, Amazon clearly states that they recall harmful products sold through their websites and suspend the seller. Moreover, they also claim to reach out to any customers who have previously purchased such impacted goods to notify them of such recall. However, this is not what they practice in reality.
 
E-commerce portals must make sure that the delivery persons must be appointed only after a thorough background check, as the customers are not going to point fingers at them. Customers are entering into an agreement with Amazon and similar e-commerce portals and not the outsourced or third party. At the same time, customers must also research third party sellers and not get fooled by the unreal deals offered by them.
 
In this case, CERC  has asked other victims of fake products to go to email enr@cercindia.org and become part of a campaign to get fair treatment for consumers.
 
Ironically, this story about the fake product being sold by Amazon was played out in front of the Secretary and Joint Secretary of the Ministry of Consumer Affairs on 15 March 2017 at a panel discussion to celebrate World Consumer Rights Day.
 
The discussion was attended by consumer activists from around the country. One of Amazon’s senior officials made the same unacceptable defence at the discussion. Amazon has not responded to Moneylife’s email asking for its views on the episode in the past two months. (Read: Allowing Fakes and Other Issues: Amazon’s Different Standards for Indian Consumers)
 
CERC plans to campaign to ensure that online portals are stopped from selling fakes and getting away with it. It also wants Amazon to recall the 340 fake Lakme Kajal sold through its ‘dukaan’ (shop). CERC also wants the Ministry to issue guidelines to: Protect consumers of online shopping against cheating and fraud; ensure that fake products are not sold by online portals by putting in place a vetting mechanism for sellers and penalties imposed on sellers who cheat consumers. It also wants a voluntary product recall and compensation policy to be made mandatory for all e-commerce and online shopping portals.
 
It is a sad reflection on the state of consumer protection that ministry officials have not acted on this unilaterally and a petition needed to be filed to campaign for what should be a basic right. 
 
To sign the petition and join the fight, click here.
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