Consumer Protection B.C. (CPBC) has fined Amazon $10,000 and ordered it to pay $9,369 in legal fees for failing to deliver a package as promised.
And the case could now set the standard for a company’s obligation under B.C.’s Business Practices and Consumer Protection Act to actually “deliver” goods ordered online.
When the B.C. customer’s package failed to arrive as promised, they contacted Amazon and were told the delivery was made to a “household member,” and to contact the police if they did not receive it as they should have.
The package was valuable — it contained a “portable dual display and portable digital storage unit” worth $582.75. The customer promptly filed a police report.
But Amazon still rejected the person’s claim for a refund, alleging “return abuse.” The company told an investigator that the person sought refunds three times in the past year, each time claiming non-delivery.
Evidence from GPS tracking shows the package was dropped at the person’s residence, and the driver noted it was handed to a person at the house. The customer could have required a signature or one-time passcode to ensure delivery, but those options were not selected.
Despite this, adjudicator Shahid Noorani was skeptical of Amazon’s claims that the package was delivered simply because it was handed to a person at the address, or that several returns established a “pattern of conduct” that could prove return abuse.
Taking this further, Noorani points out that neither handing the package off to another person nor leaving it at the door is expressly agreed to by the customer in the “distance sales contract” that forms the basis for the transaction.
Noorani warns that these actions could lead to consumers being deprived of the ability to ask for a receipt and the opportunity to inspect or refuse delivery of the goods, and could result in increased exposure to theft.
Furthermore, Noorani defines “deliver” in this context to mean actually ensuring delivery is made to the rightful consumer, ultimately deciding the onus is on Amazon to prove it delivered the goods, not on the consumer to prove the company did not.
“When you buy something online, you should know exactly how it will be delivered because it’s clearly outlined and you’ve agreed to it,” says Louise Hartland, director of public relations for Consumer Protection BC, in a news release announcing the decision.
“It is not good enough for an online retailer to simply drop packages at the door or hand them to another person if the consumer has not agreed to this. This kind of delivery may be allowed, but only with the customer’s understanding and consent.”
Amazon also tried to argue that its terms and conditions overrule the consumer’s rights under the Business Practices and Consumer Protection Act, but Noorani finds that a consumer cannot waive these rights, regardless of what the terms say.
Along with the fines, the judgment orders Amazon to refund the money to the consumer. The company has 30 days from the Oct. 14 decision date to apply for a reconsideration.