There is general perception among us that purchasing of goods online is cheaper than buying offline and most of the times it is true also....
There is general perception among us that purchasing of goods online is cheaper than buying offline and most of the times it is true also. However sometimes following these perceptions are proved costlier to us as there are few unscrupulous elements which knows how a common person thinks and are taking benefit of beliefs/perception.
- [message]
- While purchasing online/offline we should consider basically following things
- 1.Maximum retail Price of the Product
- 2.Net Price offered by dealer/Discount/Free gift offered on product.
- 3.Brand of the Product./Quality of the product
- 4.Seller's goodwill /web portal Image
And each one of the above will have significant Impact on our Buying Decision and if any of above is misleading then our decision will go wrong.I have recently faced such a problem while purchasing online from Snapdeal. Though the amount involved is not a Big issues for me but I am sharing this issue with you as this may effect general public at large and such people should be brought under the law of Land.
- [message]
- Who I am ?
Myself (M-41,Post graduate,working in PSU company in middle level management ) an online enthusiast, and buying goods online since 2003 even have purchased goods from the First Indian online website Bazee.com. I believe in online purchasing of Goods.I used to encourage people around me to buy goods online as genuine brand/product is available at cheaper rate. Means I am working as a Brand ambassador for e commerce companies in circle in or around me.
- [message]
- What is the Issue ?
- Brand :Milton
- MRP shown :Rs 1111/-
- Net price :Rs 749/-
- Discount : Rs 362(32 % )

After few days I have received this product from Snapdeal ,and shocked after seeing the MRP written on the product is Rs 715/- only .Then only I come to know that I have been fooled by Sanpdeal by showing Inflated MRP and discount on inflated MRP and has taken the undue benefit of my perception that online is purchase is cheaper than offline.The whole issue have a dent on my belief and tried to shatter my faith in online purchasing but I have not broken and decided to fight against it.
There is general discount 25-30 % on MRP in market on such product ,so It means if I have bought this product offline after negotiations and research then I would have been paid amount around Rs 500 (715- 30% discount) means I have incurred a possible Loss of around Rs 250/-.
This is a clear cut case of fraud as difference in actual MRP (715) and MRP shown on the website(Rs 1111) is Rs 396/-.So it can not be said that difference in MRP is due to different batches of production. Even at this time product MRP has been shown on other website is 715 including official online selling site of Milton.
This is a clear cut case of fraud as difference in actual MRP (715) and MRP shown on the website(Rs 1111) is Rs 396/-.So it can not be said that difference in MRP is due to different batches of production. Even at this time product MRP has been shown on other website is 715 including official online selling site of Milton.
- [message]
- What is the result of Matter taken with concerned ?
I have two option ,First option available with me that I can return the product and get back my money but that option could not be availed as produced is needed for immediate use.So I opted second option and took up the matter with company (sanpdeal) and lodged a written complaint with Snapdeal.
Snapdeal has contacted me on Phone and offered me 749-715=34 Rs But I have raised larger points to them so that other customers will not face the same problem
- [message]
- What is your responsibility as a marketplace in above case?
- What action you have taken against dealer?
- Why the product is still shown at inflated MRP ?
- Why not a complaint against you may be lodged with appropriate authority for adopting unfair trade practices (misleading ads and charging more than MRP ?
But the SD representative have only one answer that we can't help you more then this ,I have asked them to transfer call to senior then she answered that I am also on Senior post and competent to deal with such matter.
Then Next day I have again raised the matter with Online helpline at SD ,they assured me action shall be taken but I have not been contacted there after by Snapdeal But when I have check the listing page of above product next day then found that SD has reduced the MRP of above said product to Rs 715/-but what about action taken against dealer ? Further they have credited Rs 34/- in my account though I have never demanded refund of Rs 34/-
- [message]
- Larger issue Involved
The issue is not confined to the Reduction in inflated MRP of one product but to stop such practices by web portal/dealers of web-portals.
- [message]
- What Law says about such issue ?
Any retailer charging more than MRP is liable to a fine upto Rs. 5000 or a prison term of five years with a fine.Further consumer court may also give damages to complainant also.
Case Law-1
An interesting case of Mr. Varun Bhalla (complaint number: 383014) against Seven Seas Super Mart Pvt. Ltd. filed in the consumer court. Consumer went to Seven Seas Super Mart Pvt. Ltd., Moga, Punjab as the store had advertised that they charge less than MRP on packaged products. Along with other items, he purchased DOVE Soap of 42 gms. In the cash memo he noticed that the weight of the soap cake is mentioned as 50 gram for Rs. 20/-, and after discount, he was charged Rs. 19/-. He was surprised to see that on the soap packaging the MRP mentioned was Rs. 18/- & weight as 42 gram. By manipulation in cash receipt software, the store was actually charging more than MRP.
Case Law-1
An interesting case of Mr. Varun Bhalla (complaint number: 383014) against Seven Seas Super Mart Pvt. Ltd. filed in the consumer court. Consumer went to Seven Seas Super Mart Pvt. Ltd., Moga, Punjab as the store had advertised that they charge less than MRP on packaged products. Along with other items, he purchased DOVE Soap of 42 gms. In the cash memo he noticed that the weight of the soap cake is mentioned as 50 gram for Rs. 20/-, and after discount, he was charged Rs. 19/-. He was surprised to see that on the soap packaging the MRP mentioned was Rs. 18/- & weight as 42 gram. By manipulation in cash receipt software, the store was actually charging more than MRP.
My case is also similar to above cases and two main laws has been broken here.
- Charging More than MRP.
- Showing misleading ads by shown Inflated MRP and notional discount and it is breach of trust
Case Law-2
In a another case a complainant went to purchase a product namely tarpaulin (Waterproofed Canvas), the price mentioned on the ‘duckback baby sheet’ purchased by him was Rs 92, but the seller asked him to pay for Rs 112 along with the statement that the price of the sheet was actually Rs 124 but it had an old label indicating the MRP as Rs 92. So after discussion, the price was settled between them (the seller and the buyer) at Rs 112.
In the above said matter the State Commission held that if the old label on the product indicated Rs 92 as the MRP, then charging more than what has mentioned on the packaging is illegal and the activity of the seller constitutes an unfair trade practice. And as a punishment for indulging in such a practice, the commission used the relatively new provision in the Consumer Protection Act to impose exemplary damage and asked the seller to pay the consumer punitive damages of Rs 10,000.
The apex consumer court, before which the seller filed an appeal, said it fully agreed with the view of the state commission. While doing so, it pointed out that if the price had been increased from Rs 92 to Rs 124 due to increased cost of production and transportation, which would apply only to the new stock. The price of the old stock cannot change. In the circumstances, the old stock cannot be sold at the new price. Therefore, the state commission was right in imposing exemplary compensation. (M/S Cargo Tarpaulin Industries Vs Sri Mallikarjun B.Kori, revision petition number 2132 of 2007, decided on July 5, 2007). It is an offence to sell at a price higher than the marked price. It is for this reason that manufacturers provide a more than adequate cushion for dealer margins while marking the MRP. Whereas it is specifically mentioned Under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006 that No person shall sell or cause to be sold any consumer goods without the cost of production and maximum retail price of the product printed on such product after the expiry of six months from the date of coming into force of this Act.
Posted by Simple Tax India on Tuesday, December 27, 2016
- [message]
- What are the views of All Major portal on the issue ?
Whether any internal control/check has been placed to stop dealers from charging price more than MRP at your web portal ?
We have tweet a question to Major e commerce Portals on the above subject
Reply by Snapdeal
Hi! Please DM us the contact details so that we can connect with the concerned person. Thanks! .I have send a contact number they have contacted me and informed me that 34/- Rs has been refunded to you.But nothing has been said about other issues raised.
We have also send them Mail ,but no response We have also send tweet message to co founder of snapdeal but no message.
Reply by Flipkart
The MRP of a product may vary across various sellers. This can be due to the manufacturing date, batch size as well as inputs in products.
Reply from Amazon M.R.P.
Hi, while we attempt to ensure that this information is accurate, there may be cases where M.R.P. of the product delivered is different from the website at times.
The M.R.P. displayed for products on our website represents the full retail price listed on the product itself as shared by Manufacturers, Distributors or Sellers. While we attempt to ensure that this information is accurate, there may be cases where M.R.P. of the product delivered is different from the M.R.P. given on the website due to various reasons including time lag in updating prices post changes in M.R.P., product belonging to a different batch or different M.R.P.s being used by manufacturers in different regions.
- [message]
- Analysis of Views/replies from all Major web portals and our views on it.
Then We have taken a specific research on MRP of Milton make product on above three major site and compare the Mrp with authorised Milton website and found that MRP is particularly inflated only on Snapdeal website so we can say that other website have developed some internal control/check to stop dealers from indulging in such unfair trade practices.
In our view such incidence is lower at Amazon and Flipkart web portal as both are following inventory based model.Where as Snapdeal is a pure marketplace.
Further we are doubtful that the policy of Amazon stated above is as per law of land specially in light of case discussed by us above. Amazon states that "MRP of the product delivered is different from the M.R.P. given on the website due to various reasons including time lag in updating prices post changes in M.R.P., product belonging to a different batch or different M.R.P.s being used by manufacturers in different regions."
Same is the case of Flipkart.
- [message]
- Complaint sent to "Milton" Brand owner.
I have also send a complaint to Owner of Milton Brand and have requested them to take action against the dealer who is selling their product at inflated MRP and also take up the matter with snapdeal.
They have replied us that we have sent the complaint to concerned department.
They have replied us that we have sent the complaint to concerned department.
- [message]
- Who is at Responsible ?
After reading the above story you all have a impression that Snapdeal is the Major culprit but this is not the 100% truth.
All the Major e-commerce web portals are working as Market place and providing just a platform to dealer to list and sell products on their web portal for a certain fees .They are not selling product as such. Dealers who sells their product on web portals have liberty to sell product at a price suitable to them and may offer discount as they wish.
But Fact of the matter is that when we ask a person from where you have purchased the product then he only points out Flipkart/snapdeal/Amazon ,and no bodies knows/bothered who the dealers is ? which is actually selling the product.
So Even though web portals are not directly selling the product to customer but customer is purchasing the material due to faith level/goodwill generated by Big brand names of e commerce web portals and customer believes/have a impression that he is buying items from Snapdeal/flipkart/Amazon of the world.So due to perception/believes/impression/faith we are holding , Web portals are More responsible than the actual dealer.E commerce portals shall maintain highest standards/controls/checks in each fields and they can't run from their responsibility by giving any excuse that mistake is on the part of dealer.
Responsibility lies with us also,as we should also keep some precautions while purchasing the product either offline or online.We should not consider the absolute discount percentage offered by dealer/website only but should also enquire about all four basic parameters to purchase a product as discussed in starting paragraph.
- [message]
- What is our demand from Web portals and Brand owners
- All the web portal must have a strict policy on the above issue and should have strong internal control /internal check /audit etc to plugin such loopholes.
- Sample test check may be taken at dispatch center.
- An undertaking should be taken from supplier registered on website that they will not charge more than MRP and will not show inflated MRP /notional discounts .Strict and swift action shall be taken against any rule breaker.
- Snapshot of Box showing MRP of the Product /Date of Manufacturing etc should be uploaded on website.
- Brand owners should provide updated price list of their products on their respective website.
- [message]
- Lessons learned from above issue ?
- Keep Vigilant ,Do not buy the product only on the basis of absolute discount percentage shown on the website .
- Before purchasing Compare the price of product with all available websites,search product description in google you will got the price details from major website.
- Before purchasing, also visit offline stores also as they are providing luxury to hold the product in your hand before purchasing and chances of charging higher MRP is minimal.
- You may also use comparison website also.
- Read Terms and condition given under scheme and take a copy of of T &C and also take snap shot of offer and product page ,so that you can raise your voice along with reasonable documents /proofs.
- Raise your voice whenever any thing wrong happened with you.By doing this you can save other from same thing.
- Additional Discount can also be availed from cash back website like cashkaro.
- Keep united through social media/blog etc so that we can protect our rights.
Please comment
Download Attachment related to above(go to next page)
[next]
Download Attachment related to above(go to next page)
Download Attachment related to above(go to next page)
[next]
Download Attachment related to above(go to next page)
- Snapshot of Bill sent by Snapdeal
- Snapshot of Box received by Snapdeal
- Snapshot of Snapdeal website listing of above said product.
- Transcript of chat with snapdeal customer care
- Snapshot of the 500 Milton product listed on snapdeal sorted by discount.(12MB)
- Request sent to owner of Milton Brand and e commerce website
COMMENTS