The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 2,00,000 on Digital Age Retail Pvt. Ltd., the parent company of FirstCry, for engaging in misleading advertisements and unfair trade practices on its e-commerce platform.
The action was taken under Sections 10, 20, and 21 of the Consumer Protection Act, 2019, following a consumer complaint that FirstCry displayed products with the label “MRP inclusive of all taxes,” but later added GST on the discounted price during checkout. This practice created a false impression of deeper discounts and misled consumers about the final payable amount.
An investigation supported by data from the National Consumer Helpline (NCH) revealed that discounts advertised as 27% were effectively only 18.2% after GST was added. The CCPA found this to be a case of deceptive pricing, drip pricing (a dark pattern), and a violation of Rule 7(1)(e) of the Consumer Protection (E-Commerce) Rules, 2020.
In response, FirstCry has updated its website and mobile app to ensure that all prices—original and discounted—are inclusive of taxes, and that any additional charges such as shipping or convenience fees are clearly disclosed. The platform now prominently displays the disclaimer “price inclusive of all taxes” across all pages.
The CCPA emphasized that such misleading practices must not be repeated, especially given FirstCry’s wide consumer base across India and Asia.
