New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹2 lakh on Digital Age Retail Pvt. Ltd. (FirstCry) for publishing misleading advertisements and engaging in unfair trade practices on its e-commerce platform.
The order was passed under Sections 10, 20, and 21 of the Consumer Protection Act, 2019.
The CCPA action was initiated following a consumer complaint against FirstCry’s pricing model. The complaint highlighted that while products were listed as “MRP inclusive of all taxes,” additional GST was levied at the checkout stage.
Also Read: Rapido Fined INR 10 Lakh by CCPA for Misleading 5-Minute Auto Advertisements
This practice created an impression of higher discounts, misleading consumers about the actual payable price.
CCPA Penalty on FirstCry Over Misleading Price Claims
An investigation supported by data from the National Consumer Helpline (NCH) revealed that discounts displayed on products were reduced substantially when GST was added at checkout.
For example, a product marketed with a 27% discount was effectively sold at just an 18.2% discount, constituting deceptive pricing and unfair trade practices.
CCPA Identifies Drip Pricing and Dark Pattern in FirstCry’s Model
The CCPA observed that disclaimers such as “additional charges may apply” or “GST & add’l charges may apply on discounted price” did not meet the statutory requirement to display the MRP inclusive of all taxes.
By representing prices as tax-inclusive and charging GST later, the company engaged in “drip pricing,” a dark pattern under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
This practice also violated Rule 7(1)(e) of the Consumer Protection (E-Commerce) Rules, 2020, which mandates that the total price, inclusive of all charges and taxes, must be displayed upfront.
Also Read: CCPA Fines VLCC Limited INR 3 Lakh for Misleading CoolSculpting Advertisements
CCPA Directs FirstCry to Ensure Transparent Pricing
Given the scale of FirstCry’s operations as one of the largest online retailers of maternity, baby, and children’s products in India and Asia, the authority found the practice to have a widespread consumer impact.
The CCPA has directed FirstCry to always display original and discounted prices as tax-inclusive and to prominently disclose any additional charges such as shipping or convenience fees.
Following the intervention, FirstCry has updated its website and mobile application to ensure complete transparency in price display.
The company now prominently highlights “price inclusive of all taxes” across all product listings, ensuring that the final discounted price reflects the total payable amount with no hidden GST charges.
