Failure To Deliver Product, Process Refund Promptly, Chandigarh District Commission Holds Nykaa Liable

Brief Facts:

The Complainant, enticed by the deals on the Nykaa application, placed an order for which an invoice of Rs. 2823.24/- was generated. The Complainant paid for this order via an online transaction. After placing the order, the Complainant contacted Nykaa through its help centre to inquire about the order's status. Nykaa responded that it forwarded her request for urgent delivery to the relevant team and advised her to check the status through the mobile application. Despite this, the Complainant found that the status of her order was never updated, and the product was not delivered. The last status update of her order remained static. Although Nykaa eventually refunded the amount, the Complainant argued that its delayed response constituted a deficiency in service. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission-I, U.T. Chandigarh (“District Commission”) against Nykaa.

In response, Nykaa argued that a full refund of Rs. 2824.21/- was credited to the Complainant's bank account. It argued that since the refund was processed, there was no cause of action against them. It also claimed it acted as an intermediary and should not be held liable for any service deficiencies.

Observations by the District Commission:

The District Commission noted that despite the passage of nearly a month, Nykaa neither delivered the products nor refunded the amount paid. It was only after the Complainant issued a legal notice that Nykaa refunded the amount.

The District Commission held that Nykaa failed to update the status of the Complainant's order or deliver the products and kept her waiting for about a month. The bench held that Nykaa unjustifiably withheld the Complainant's money. The refund was processed only after the Complainant was forced to engage an advocate to send a legal notice. Therefore, the District Commission held Nykaa liable for deficiency in services.

Consequently, the District Commission directed Nykaa to pay the Complainant Rs. 4000/- as composite compensation for the mental agony, harassment, and litigation expenses she incurred.

Case Title: Diksha Negi vs Nykaa E-Retail Pvt. Ltd and Anr.

Case Number: CC/474/2023

Date of Decision: 01/07/2024