The Central Consumer Protection Authority (CCPA) has fined Digital Age Retail Pvt Ltd, operator of e-commerce platform FirstCry, ₹2 lakh for misleading advertisements and unfair trade practices.
In an order issued under the Consumer Protection Act, 2019, the regulator said the company displayed products as “MRP inclusive of all taxes” but later added goods and services tax (GST) at checkout, creating a misleading impression of higher discounts.
The CCPA found that discounts advertised on the platform were reduced significantly once GST was applied. In one example, a product listed with a 27% discount was effectively sold at 18.2% after the additional tax.
The regulator said disclaimers such as “additional charges may apply” did not override the requirement that the maximum retail price must include all taxes. It described the practice as “drip pricing,” a dark pattern under the 2023 guidelines for online platforms, which misled consumers about the final payable amount.
The order also noted violations of the Consumer Protection (E-Commerce) Rules, 2020, which require that the total price, inclusive of taxes and charges, be displayed upfront.
The CCPA directed FirstCry to ensure both original and discounted prices are shown inclusive of all taxes and that any extra charges such as shipping or convenience fees are clearly disclosed.
The authority said the company has since rectified its platform to display final prices inclusive of all taxes across its website and mobile app.
FirstCry, one of India’s largest online retailers for maternity and children’s products, did not issue an immediate public statement on the order.
