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Seeking advise regarding breach of CPA 2019 ACT Seeking advise regarding breach of CPA 2019 ACT

2 years ago

I have visited the website firstcry.com and have noted that there are many products with misleading advertising.
One such example is Pampers Pure Protection Medium Size Baby Diaper - 26 Pieces Size: Medium, where the MRP inclusive of all taxes is Rs. 890, where the breakdown would be roughly 802+ 96 (taxes/GST). The website shows currently a discount of 23% redacting the MRP of 899.

I strongly believe this is in breach of CPA 2019 ACT for misleading advertising as the discount of 23% is not true discount. If the discount of 23% is true, the GST/taxes would not be added on top of listed 690.34, as the price listed clearly states including of all taxes. I do acknowledge that there is section at bottom which further states there is GST applicable on top of the price however this would be a breach of CPA ACT as per the initial display of price and discount, i.e, the MRP is inclusive of all taxed noted as $899, and this price is redacted and 23% discount is noted (without mentioning that this without GST & taxes) and that a further GST amount will be added.

For this issue raised to the company, below is their response:
Related to GST please refer to terms of use on the website - Pricing, Promotions & Coupon Codes > Applicability of GST , When the discount becomes 19% and above then, additional GST is charged as we are not selling on MRP. Hence the product is given at the sold price.

Applicability of GST - All discount coupons and/or cashback offers include an applicable component of GST benefits being passed on to customers.
Following rules will govern whether or not GST will be applicable on the products purchased at a discount by you:
1. Quantum of GST to be borne over and above the discounted price depends upon the category to category and the prevailing discount on those products.
2. GST applicability:
Discount less than 19% In case of the product having a discount of less than 19%, full applicable GST shall be borne by the Company.
Discount 19% and above
a) In case of the product having GST of 5% or 12%, GST shall be paid by the Customer over and above the discounted price.
b) In case of the product having GST 18% and above, 50% of the applicable GST shall be charged from the Customer over and above discounted price.
Applicable GST collected on the discounted price is duly deposited with the respective GST Authorities having jurisdiction or adjusted as per the applicable GST Act and Rules
Price after discount in no way should be treated as the revised MRP. Discount % shown on MRP is only for the purpose of calculation of the Discount amount and GST is charged as per the explanation given above.
3.For the purpose of invoicing on the Website, Discounts shall include Coupons, Cashbacks, Cart offers Promotional offers or any other offer which results in a reduction in the regular MRP.
4.For any discounted product, the GST charged will be displayed in the Cart.
5.In case a Customer avails discount through Coupons, GST, if any, on a transaction, will be applicable only upon confirmation of the Coupon and the GST amount will be visible directly on the checkout page.
6.The amount of taxes shown at the cart level is a mere estimate. The actual GST rate may vary depending upon the SGST prescribed by the respective state.

Kindly advise if they are still in breach of this act as i strongly believe this is misleading adverstising

Kishan Dutt Kalaskar

Responded 2 years ago

View All Answers
A.Dear Sir,
You may get issue a legal notice and claim for compensation if you have purchased any product which is mispleading or file a PIL or any other petition before the High Court seeking a direction to close the same or to seek investigation upon the working of such website.

I could have explained more if background is known to me. If background is made known in full then legal experts will be in position to understand correctly. Moreso, the background must be in brief.

Please give me FIVE STAR if satisfied by my answers.

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