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The Kalahandi district consumer disputes redressal commission in Odisha, India, has imposed a significant financial penalty exceeding Rs 10 lakh each on e-commerce giant Flipkart Internet Pvt Ltd and Gujarat-based manufacturer Elibliss Care. The ruling finds the companies jointly responsible for deceptive trade practices and the dissemination of misleading advertisements regarding a coconut oil product sold on the platform.
The case originated from a consumer complaint filed by Deepak Dube, who purchased a 200 ml bottle of 'Elibliss organic pure extra virgin cold pressed coconut oil' for Rs 114 via Flipkart. Although the product was prominently marketed as '100 per cent pure and natural', the packaging's ingredient list revealed a complex mixture including extra virgin olive oil, sweet almond oil, sunflower seed oil, castor oil, Moroccan argan oil, vitamin E, lemon essential oil, and light liquid paraffin.
In its judgment, the commission noted that the branding and promotional materials created a false impression that the product consisted solely of coconut oil. Furthermore, the complainant highlighted a 'No Return Applicable' policy on the online listing and the presence of a Rs 10 gift card inside the packaging, which allegedly incentivized customers to provide five-star ratings and positive reviews in exchange for rewards.
While Flipkart argued that it functions merely as an intermediary between independent sellers and consumers, the commission rejected this defense. It ruled that since the transaction was completed through its platform, a consumer relationship existed between the complainant and the e-commerce firm, making it liable for the accuracy of product claims.
Consequently, the commission ordered both companies to deposit over Rs 10 lakh each into the Odisha State Consumer Welfare Fund as punitive damages. They must also jointly pay Rs 1 lakh in compensation to the complainant, refund the original purchase price of Rs 114, and cover Rs 10,000 each in litigation costs.
Source: The New Indian Express