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CCPA Fines FirstCry Rs 2 Lakh for Misleading Tax-Inclusive Pricing

The regulator labeled the checkout practice as drip pricing classified as a dark pattern under its 2023 guidelines.

Overview

  • CCPA penalised Digital Age Retail Pvt Ltd (FirstCry) after finding false and misleading price representations on its e-commerce platform.
  • The order followed a complaint that products marked ‘MRP inclusive of all taxes’ had GST added at checkout on discounted prices, reducing the real discount.
  • Investigators, citing National Consumer Helpline data, showed an advertised 27% discount effectively dropped to 18.2% once GST was applied.
  • The authority invoked Sections 10, 20 and 21 of the Consumer Protection Act, cited misleading ads under Section 2(28), unfair trade practices under Section 2(47), and a breach of Rule 7(1)(e) of the E-Commerce Rules, 2020.
  • FirstCry has updated its website and app to display tax-inclusive prices with clear disclosures, and its shares closed 4.12% lower at INR 362.6 on the BSE.