I paid for a product on an online marketplace but the seller disappeared. What can I do?

I ordered an item from a third-party seller on a popular shopping app, paid in advance, but the seller never shipped it and is now unreachable. How do I recover my money? What I am unsure about is the procedure — where the application goes, what it costs, and how long online marketplace fraud matters usually take. A plain explanation of the steps, in order, would help more than a general answer.

The law that applies to online marketplace fraud here is Consumer Protection Act 2019, Section 2(47), Information Technology Act 2000, Section 66D and Consumer Protection (E-Commerce) Rules 2020, Rule 6. The detail below matters, because Consumer Protection Act 2019, Section 2(47) draws the line differently depending on what your documents show.

Non-delivery after advance payment by a seller who then becomes untraceable amounts to both deficiency in service and an unfair trade practice under the 2019 Act.

Rule 6 of the E-Commerce Rules requires the marketplace to maintain verified records of its sellers, so the platform can be compelled to disclose seller KYC details for you to pursue legal action.

If the seller used a fake identity or fabricated listing to cheat buyers, this may also amount to cheating by personation under Section 66D of the IT Act, allowing a cybercrime complaint.

Payment gateway or platform refund policies often provide a buyer protection guarantee for non-delivery, which should be invoked before escalating to formal legal remedies.

You may implead both the seller (if traceable) and the marketplace platform in a consumer complaint if the platform failed to exercise the due diligence required under the E-Commerce Rules.

In practice, in this order: 1) Request a refund immediately through the platform's buyer protection or refund policy; 2) File a cybercrime complaint at cybercrime.gov.in if the seller's identity appears fraudulent; 3) Send a written complaint to the platform demanding seller KYC details and refund; 4) File a consumer complaint against the seller and platform for refund with compensation.

Timing matters here: Consumer Protection Act 2019, Section 2(47) works on limitation periods, so a online marketplace fraud claim that is right on the merits can still fail if it is brought late. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in consumer law.

Disclaimer: This information is for general awareness and does not constitute legal advice. Statutes and their interpretation change, and outcomes depend on the facts of your case. Please consult a qualified advocate before acting on it.