CCPA Fines FirstCry ₹2 Lakh for Misleading Ads, Unfair Trade Practices

The Central Consumer Protection Authority (CCPA) has fined Digital Age Retail Private Limited (FirstCry) Rs 2 lakh for false and misleading advertisements and unfair trade practices. This was announced in an official release made by the CCPA on Friday. A fine of Rs 2,00,000 has been levied on Digital Age Retail Private Limited (FirstCry) for false and misleading price presentation, the statement added.

This order has been issued under sections 10, 20, and 21 of the Consumer Protection Act, 2019. The CCPA ordered Digital Age Retail (FirstCry) to make false and misleading advertisements on its e-commerce portal (www.firstcry.com) and to practice unfair trade practices.

The authority directed the company to rectify this practice and ensure that both the original and discounted prices include all taxes. The company was also asked to clearly mention additional charges. This action was taken based on a consumer complaint that FirstCry displayed products with "MRP inclusive of all taxes."

The report further states, "The investigation, supported by data from the National Consumer Helpline (NCH), revealed that advertising discounts on the MRP but charging GST separately on the discounted price significantly reduced the benefit to consumers. For example, products advertised with a 27 percent discount were effectively sold at only an 18.2 percent discount after the implementation of GST."

The CCPA has taken this action on the grounds of misleading pricing, misleading advertisements, and unfair trade practices under Section 2(28) of the Consumer Protection Act, 2019. Following the CCPA's intervention, the company has improved its platform to provide greater transparency in the display of prices on its website and mobile application, the statement said.