Bought a tricycle, got tagged a ‘fraud’: Court orders FirstCry to Rs 50,000 in compensation to customer
What was the complaint?
The complainant, Shaik Altaf, ordered a children’s tricycle through FirstCry on December 1, 2024 and paid Rs 2,130.06 through PhonePe. However, the next day the order was canceled without any explanation and the amount was not refunded.
When Altaf contacted customer service, he was informed that this amount had been adjusted based on the previous order in 2023. According to FirstCry, in this transaction it allegedly returned the wrong products to get a refund, keeping the original products.
Altaf denied the claim, stating that the return was accepted after pickup and warehouse quality verification in accordance with FirstCry’s own policies. He also stated that he had not received any emails, calls or written communications expressing concern about the earlier reversal.
‘Fraudulent user’ tag is being examined
The Commission noted that FirstCry internally flagged the transaction as a “scam user order cancellation,” effectively branding the complainant as a fraudster without any investigation or opportunity to respond.
What did the commission say?
The commission found FirstCry’s defense contradictory. While the company admitted before the National Consumer Helpline that refunds for the 2023 transaction had already been processed, it later cited allegations of fraud in the same transaction to justify withholding payment for the new order.
“Once refunds are made following verification, it is not clear that the other party then claims that the returned products are faulty and refuses to refund in a subsequent transaction. This contradictory attitude is arbitrary,” the Commission said. anguish,” he also noted.
The compromise offer was noted by the commission
The consumer commission also noted that FirstCry’s representative contacted Altaf three times after the complaint was lodged and offered a settlement of Rs 2,190 as refund along with Rs 15,000 as compensation.
Although this was not seen as a direct admission of error, the commission observed that it showed that the company was aware of the weakness in its position.
Defense rejected
FirstCry also argued that the order was given by a different person identified as Sameer Basha Bamri. However, the commission rejected this claim after reviewing the payment records and order details submitted by the complainant.
The document prepared by FirstCry to support its defense was found to be illegible and unreliable.
Assistance provided
The commission directed FirstCry to repay Rs 2,130 crore with interest at 9% per annum from December 1, 2024, till realization. He also ordered the company to pay Rs 50,000 as compensation for his mental anguish and Rs 5,000 towards litigation costs.
Payments must be made within 45 days. The commission also ordered the company to “prevent such unfair business practices” in the future.
