Instagram Shop Took the Return But Refused Refund — What You Can Do Legally

One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Priya Menon, a 20-year-old college student based in Pune, ordered a pair of jeans from an Instagram-based clothing store in late March 2025. She paid ₹939 upfront via UPI. When the parcel arrived, the size was completely wrong — the seller had shipped a Size 32 against her clearly stated order of Size 28. The store acknowledged the error without any resistance, and their pickup agent collected the return parcel in early April 2025.

What followed was weeks of silence, deflection, and then outright ghosting. The store cycled through excuses — stock delays, processing issues, "give us more time" — before eventually stopping all responses. Priya had screenshots of every conversation and the UPI payment receipt, but didn't know how to convert that evidence into a formal complaint. She had tried raising the issue repeatedly on her own, including sending a firm deadline message, but nothing moved.

She eventually approached Advocate Sudhir Rao after her solo efforts failed to produce any result. A legal notice was drafted under the Consumer Protection Act, 2019, followed by a formal complaint before the District Consumer Disputes Redressal Commission. Once the seller realised the matter had entered formal legal proceedings, a full refund was processed promptly. The case illustrates clearly why having domain-specific experience in consumer matters — and knowing exactly which forum to approach and in what sequence — makes a material difference in how quickly resolution comes.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Send a formal legal notice first: Before approaching the Consumer Forum, send a written legal notice to the seller. This puts them on record and often triggers a refund without litigation. Your advocate can draft this notice citing specific provisions under the Consumer Protection Act, 2019.

Raise a UPI dispute with your bank: If the payment was made via UPI, file a chargeback or dispute request with your bank or payment app (PhonePe, Paytm, Google Pay). Most banks have a structured grievance window for such transactions. Do this in parallel with legal steps — don't wait for one to fail before trying the other.

File on the National Consumer Helpline: Register your complaint at the National Consumer Helpline (1800-11-4000) or the INGRAM portal (consumerhelpline.gov.in). This creates a government-tracked record and sometimes resolves the matter informally before a formal forum filing becomes necessary.

And here's the thing — consumer disputes involving digital payments and Instagram sellers sit at the intersection of consumer law, payment regulation, and e-commerce rules. A general practitioner may not be fully familiar with how the Consumer Protection (E-Commerce) Rules, 2020 interact with Consumer Forum jurisdiction. Engaging an advocate who regularly handles consumer matters typically leads to faster resolution and better-framed complaints.

Applicable Sections of Law

This matter is civil in nature, governed primarily by consumer protection statutes. The following provisions are directly applicable:

• Section 2(7), Consumer Protection Act, 2019: Defines "consumer" — Priya qualifies as a consumer who purchased goods for personal use.
• Section 2(47), Consumer Protection Act, 2019: Defines "unfair trade practice" — sending the wrong product and then withholding the refund after return pickup falls squarely within this definition.
• Section 35, Consumer Protection Act, 2019: Empowers a consumer to file a complaint before the District Consumer Disputes Redressal Commission for deficiency in service and unfair trade practices.
• Section 2(11), Consumer Protection Act, 2019: Defines "deficiency" — failure to refund after acknowledged return constitutes a clear deficiency in service.
• Consumer Protection (E-Commerce) Rules, 2020, Rule 6 & Rule 7: Mandate that e-commerce sellers provide clear return and refund timelines and honour them. An Instagram-based seller operating commercially is subject to these rules.

Jurisdiction — Where to File the Case

For a claim of ₹939, the matter falls within the pecuniary jurisdiction of the District Consumer Disputes Redressal Commission, which handles complaints up to ₹50 lakh under Section 34 of the Consumer Protection Act, 2019. Since the consumer (Priya) is based in Pune, she can file the complaint at the District Consumer Commission in Pune — territorial jurisdiction lies where the complainant resides or the cause of action partly arose, as affirmed in Sonic Surgical v. National Insurance Co. Ltd., 2010. Now, before you act, get this right from day one. Getting jurisdiction wrong at the outset causes costly procedural delays that are entirely avoidable.

Limitation Period

Two years. That's your window. Under Article 24 of the Limitation Act, 1963, a consumer complaint must ordinarily be filed within two years from the date on which the cause of action arises. In this case, the limitation clock started running when the seller failed to refund after the return pickup in early April 2025. Missing this two-year window can be fatal to your complaint, and a delay beyond two years requires a formal application for condonation of delay under Section 69 of the Consumer Protection Act, 2019. The Commission has full discretion to reject that application. Don't wait — file early.

Interim Reliefs Available

Frankly, most people don't know these protections exist. Under Section 38(8) of the Consumer Protection Act, 2019, the District Commission can pass interim orders during the pendency of proceedings, including directing the opposite party to refrain from disposing of assets or to maintain status quo. Where a seller is known to be operating across multiple platforms and there is real risk of asset dissipation, your advocate can seek an attachment-like protective order. These interim protections matter because they prevent the seller from becoming untraceable or insolvent before the final order is passed. Acting early gives you access to these tools — acting late doesn't.

If You Are the Victim

• Preserve all evidence immediately — screenshot every chat, save UPI receipts, photograph the wrong product received, and store the pickup acknowledgment slip from the delivery agent.
• Send a formal written legal notice to the seller, giving them 15 days to refund or face legal proceedings. Your advocate can ensure this notice is worded correctly and serves as evidence of prior demand.
• File a complaint on the INGRAM portal (consumerhelpline.gov.in) and on your UPI platform's dispute resolution mechanism simultaneously.
• If no response comes, file a complaint before the District Consumer Disputes Redressal Commission in your city of residence under Section 35 of the Consumer Protection Act, 2019.
• Attach all screenshots, UPI transaction records, and the legal notice along with your complaint. Courts look favourably on well-documented consumer complaints.

Documents You Must Keep Ready

• Aadhaar card or PAN card as identity proof
• Screenshot of the original order placed on Instagram (with date and product details visible)
• UPI payment receipt showing transaction ID, amount, and recipient details
• Screenshots of all chats with the seller acknowledging the wrong size and confirming the return pickup
• Pickup acknowledgment or courier slip from the delivery agent who collected the return
• Any email or message where the seller promised a refund or exchange
• Bank or UPI app transaction history showing the debit
• Copy of the legal notice sent to the seller, with proof of delivery

What Evidence Is Required?

• Primary evidence: UPI payment receipt — this is your strongest document. It proves money was paid and to whom.
• Primary evidence: Chat screenshots where the seller admits the wrong size was sent and confirms return pickup — this establishes liability.
• Primary evidence: Pickup slip or courier record confirming the returned product was collected by the seller's agent.
• Secondary evidence: Photos or video of the wrong product received (size tag clearly visible) — corroborates your version.
• Secondary evidence: Screenshots of the Instagram product listing showing the size you ordered.
• Bank statement reflecting the debit, in case the UPI receipt alone is questioned.
• Any public posts or reviews about the same seller from other buyers facing identical issues — admissible as circumstantial context in consumer proceedings.

How Courts Typically Approach Such Cases

Consumer Commissions in India generally take a practical, evidence-first approach in cases like these. Where the seller has acknowledged the mistake in writing and accepted a return but failed to refund, Commissions typically find this to be an open-and-shut case of deficiency in service. Make no mistake, the law here is quite clear. In Lucknow Development Authority v. M.K. Gupta, 1994, the Supreme Court held that consumer protection law must be construed liberally in favour of the consumer. Commissions routinely award the refund amount along with interest, compensation for mental harassment, and costs of litigation. Sellers who ignore notices or fail to appear often face ex-parte orders — which are exactly as unpleasant for them as they sound.

Timeline of Legal Process

• Step 1 — Legal Notice (Week 1-2): Advocate drafts and sends a formal notice to the seller. Many matters resolve here.
• Step 2 — Filing Complaint at District Consumer Commission (Week 2-4): If no response to notice, file complaint under Section 35, Consumer Protection Act, 2019, with all documents.
• Step 3 — Admission and Notice to Opposite Party (1-4 weeks after filing): Commission admits the complaint and issues notice to the seller.
• Step 4 — Written Statement by Seller (4-8 weeks): Seller files their response (or defaults, enabling ex-parte proceedings).
• Step 5 — Evidence Stage (2-4 months): Both sides file affidavits and documentary evidence.
• Step 6 — Arguments (1-2 months): Oral or written arguments submitted before the Commission.
• Step 7 — Order / Judgment (1-3 months after arguments): Commission passes order, typically awarding refund, compensation, and costs.
• Step 8 — Execution (if needed): If seller doesn't comply, execution proceedings can be initiated to enforce the order.
• Total realistic timeline: 6 to 12 months for a straightforward matter at District Commission level.

Understanding the Costs

The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.

A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.

Can the Matter Be Settled Out of Court?

Yes — and honestly, in many cases it's the smarter move. A well-drafted legal notice alone resolves a significant proportion of consumer disputes before any forum filing. Once the seller receives a formal notice on an advocate's letterhead citing the Consumer Protection Act, 2019, many choose to refund rather than face proceedings. If the matter is already filed, Section 89 of the Code of Civil Procedure, 1908 permits the Commission to refer the matter to mediation. Consumer Commissions also have mediation cells under Section 74 of the Consumer Protection Act, 2019. Lok Adalats are another option for pre-litigation settlement — awards passed by Lok Adalats are deemed decrees and are final and binding, with no appeal lying against them.

Common Mistakes People Make

• Delaying action: Many consumers wait months hoping the seller will come around. Every week of delay weakens your leverage and moves you closer to the limitation period.
• Not preserving evidence early: Instagram stories, product listings, and chat histories can be deleted. Screenshot and back up everything the moment you sense a problem.
• Continuing to negotiate without a written record: Verbal promises and phone calls leave no trail. Insist on written communication — WhatsApp or email — so every commitment is documented.
• Posting about the dispute on social media before taking legal steps: This can complicate defamation and contempt-adjacent issues later. Consult your advocate before any public posts about the seller.
• Assuming small amounts don't justify legal action: Consumer Commissions are specifically designed for small-value disputes. The filing fee is ₹200. The idea that ₹939 is "too small to fight for" is precisely what dishonest sellers count on.
• Engaging an advocate without relevant domain experience: Consumer matters — especially those involving e-commerce sellers, digital payments, and return-refund cycles — involve specific procedural steps under the Consumer Protection Act, 2019 and the E-Commerce Rules, 2020 that a general practitioner may not be fully familiar with. An advocate who regularly handles consumer cases understands how to frame the complaint, what interim reliefs to seek, and how to present digital evidence.

Advocate Sudhir Rao, Supreme Court of India