Amazon hit with Rs 27 lakh penalty for selling locally made socks in Chandigarh; Here's why

The Chandigarh Consumer Disputes Redressal Commission has imposed a fine of Rs 27 lakh on e-commerce giant Amazon and clothing manufacturer V K Knitting Industries for selling locally produced socks under the prestigious brand name Marc Jacobs.

This decision follows a complaint filed by Jatin Bansal, a resident of Sector 9, Chandigarh, against Amazon Reseller Services Private Limited and V K Knitting Industries. Bansal alleged that he purchased a pair of 'Marc Jacobs' socks from Amazon for Rs 279.30, only to receive a counterfeit 'Marc' product manufactured by V K Knitting.

V K Knitting to pay Rs 2 lakh compensation

In response, the Commission directed Amazon and V K Knitting to refund Bansal the amount paid for the socks, along with Rs 2 lakh compensation and Rs 20,000 for litigation expenses. Moreover, the companies were instructed to deposit Rs 25 lakh into a legal aid account and cease using the 'Marc Jacobs' brand name on V K Knitting's products.

Justices Raj Shekhar Attri and Rajesh K Arya held Amazon accountable for its actions, stating that the company knowingly misrepresented the product by displaying it under the 'Marc Jacobs' brand. Despite numerous complaints from V K Knitting, Amazon continued to advertise the product falsely.

No action from V K Knitting

Furthermore, V K Knitting Industries was reprimanded for its complicity in the matter. Although aware of Amazon's misrepresentation, the clothing manufacturer took no action to rectify the situation.

The Commission emphasized the importance of transparency and ethical business practices in e-commerce, urging the Government of India's Ministry of Consumer Affairs to take appropriate action against Amazon.