Can consumers file complaints against fake discounts on e-commerce platforms?

The growth of online shopping has brought convenience to consumers, but it has also given rise to concerns about misleading marketing tactics, especially fake discounts and misleading promotional offers. Many e-commerce platforms offer flash sales, discounts, or festive offers to attract consumers, but some of these promotions can be deceptive, involving practices such as artificially inflating original prices or advertising discounts that are not genuine.

The Consumer Protection Act, 2019 and the E-Commerce Rules, 2020 provide mechanisms for consumers to seek redress for such unfair trade practices. The Central Consumer Protection Authority (CCPA) and consumer forums also offer ways for consumers to report and resolve such issues.

Fake Discounts and Misleading Promotional Offers:

1. Inflated Original Prices

• E-commerce platforms may show high original prices for products and offer a large discount, making the deal appear attractive. However, the original price might have been inflated just before the discount is applied, making the offer misleading.
• Example: A product originally listed at ₹3,000 is shown with a discount of 50%, but the price was increased to ₹3,000 just before the sale, when it was previously available for ₹2,000.

2. False Promotional Claims

• Some online platforms advertise promotions like Buy 1 Get 1 Free, 50% off, or Limited time offer, but fail to honor them or apply the discounts in a way that benefits the consumer.
• Example: An online ad promises a 50% discount, but when the consumer attempts to purchase, the discount is not applied or the product is out of stock at the discounted price.

3. False or Manipulated Pricing

• E-commerce platforms may also engage in manipulating prices by showing high discounts but failing to provide the promised prices or availability. They may list products as having huge markdowns, but when a consumer attempts to buy, the discounts are either unavailable or the stock is limited.
• Example: The price might be shown as ₹5,000 with a 70% discount, but the original price was never ₹5,000, or the product is not available for purchase at the discounted rate.

Steps to File Complaints Against Fake Discounts:

1. Document the Issue

• Screenshots: Take screenshots of the advertisement, original price, discounted price, and the final amount charged.
• Product Listings: Save or take screenshots of the product listing, which clearly shows the inflated prices or inaccurate discount information.
• Communication with the Seller: Keep a record of any communication (emails, chat logs, or customer service responses) from the e-commerce platform that failed to honor the advertised discount.

2. Contact the Seller or E-Commerce Platform

• Customer Service: Contact the customer service team of the e-commerce platform or the seller to report the misleading discount or promotion.
• Request Action: Request a refund, adjustment, or explanation for the discrepancy between the advertised discount and the final price.

3. Escalate to Grievance Redressal

• Grievance Redressal Mechanism: Every e-commerce platform is required by the E-Commerce Rules, 2020 to have a grievance redressal mechanism that addresses consumer complaints. Escalate your complaint to the grievance officer if the issue is not addressed within 7 days.
• CCPA Complaints: If the issue remains unresolved, you can escalate it to the Central Consumer Protection Authority (CCPA), which is responsible for enforcing consumer rights and ensuring that online marketplaces adhere to fair advertising and pricing practices.

4. File a Complaint with Consumer Forums

• District Consumer Forum: For claims up to ₹1 crore, complaints can be filed in the District Consumer Forum.
• State or National Consumer Forums: For higher claims, complaints can be filed with the State Consumer Forum or National Consumer Disputes Redressal Commission (NCDRC).

Procedure to File a Complaint:

• Fill out the complaint form and submit it either online or in person.
• Provide all relevant documents, such as screenshots of the fake discounts, communication with the seller, and purchase receipts.
• Filing Fees: There may be a small filing fee for consumer complaints, which is often nominal.

5. Report to the Advertising Standards Council of India (ASCI)

• If the advertisement itself is misleading or deceptive, the consumer can also report it to the Advertising Standards Council of India (ASCI).

ASCI Complaint Process:

• Visit the ASCI website and file a complaint about the misleading advertisement or fake discount.
• ASCI will investigate whether the advertisement violates the Advertising Code and take corrective measures if necessary.

6. File a Complaint with the CCPA (Central Consumer Protection Authority)

• The CCPA is responsible for taking action against unfair trade practices in the e-commerce sector. If the platform or seller continues to advertise fake discounts, consumers can:
• File a Complaint with CCPA: The CCPA can issue warnings, penalties, or directions to e-commerce platforms found violating consumer protection laws.
• CCPA Powers: The CCPA can initiate investigations and direct platforms to withdraw misleading ads or apply the actual discounts. The authority can also impose fines on platforms for violating consumer rights under the Consumer Protection Act, 2019.

Example

Scenario: Mr. Joshi saw an advertisement on an e-commerce website for a 50% discount on a smartphone that was originally priced at ₹20,000. However, when he tried to purchase the phone, he found that the original price was not ₹20,000, and the discount was not applied at checkout.

Steps Mr. Joshi Takes:

• Document the Offer: He takes a screenshot of the advertisement, the inflated price, and the final amount he was charged.
• Contact Customer Support: He contacts the platform’s customer service to ask for clarification on the discrepancy and requests a refund for the excess charge.
• Escalate the Issue: When customer service does not resolve the issue, he escalates the complaint to the grievance redressal team.
• File a Complaint with CCPA: If the issue remains unresolved, Mr. Joshi files a complaint with the CCPA, requesting them to investigate the deceptive advertising and take action against the e-commerce platform.
• Consumer Forum: If necessary, Mr. Joshi can also file a complaint with the District Consumer Forum to seek compensation for the financial loss.

Conclusion

Consumers are entitled to protection under the Consumer Protection Act, 2019 and E-Commerce Rules, 2020 when dealing with fake discounts and misleading promotional offers. They can file complaints against e-commerce platforms for engaging in unfair trade practices and seek redress through grievance redressal mechanisms, consumer forums, and even the Central Consumer Protection Authority (CCPA). By documenting the issue and following the proper complaint process, consumers can ensure that their rights are upheld and that businesses are held accountable for deceptive practices.