CCPA Fines FirstCry ₹2 Lakh for Misleading Pricing, Orders Correction of Tax-Inclusive Display
FirstCry displayed products with the representation “MRP inclusive of all taxes”, but at the checkout stage levied additional GST on the discounted price.
New Delhi, September 27: The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹2 lakh on M/s Digital Age Retail Pvt Ltd (FirstCry) for publishing misleading advertisements and engaging in unfair trade practices on its e-commerce platform. The order was issued under Sections 10, 20, and 21 of the Consumer Protection Act, 2019.
The action stems from a consumer complaint that FirstCry displayed products with the representation “MRP inclusive of all taxes”, but at the checkout stage levied additional GST on the discounted price. This practice misled consumers into believing they were receiving higher discounts than they actually did.
The investigation, backed by National Consumer Helpline (NCH) data, revealed that discounts advertised as 27% were effectively only 18.2% after GST was applied. CCPA ruled this amounted to deceptive pricing and misleading advertisements, falling under unfair trade practices defined in the Consumer Protection Act.
The authority observed that disclaimers such as “GST and additional charges may apply” were insufficient to override statutory requirements that the displayed MRP must be tax-inclusive. The practice was categorized as “drip pricing,” a dark pattern under the 2023 Dark Patterns Guidelines, and also violated Rule 7(1)(e) of the Consumer Protection (E-Commerce) Rules, 2020, which mandates upfront disclosure of total price inclusive of all taxes and charges.
In addition to the monetary penalty, the CCPA has directed FirstCry to ensure both original and discounted prices are shown as tax-inclusive, with all additional charges—such as shipping or convenience fees—prominently disclosed.
The company has since rectified its platform, ensuring the final displayed price includes all taxes, with a clear disclaimer across its website and mobile app. The corrective measures mean no GST is charged at checkout on discounted products, and the price displayed after discount is now the final payable amount.
