In a strongly-worded letter addressed to Smt. Nidhi Khare, IAS, Special Secretary & Chairperson (CCPA) of the Ministry of Consumer Affairs, the Confederation of All India Traders (CAIT) has raised serious concerns regarding a recent advertisement featuring Bollywood icon Shri Amitabh Bachchan endorsing Flipkart. The ad, which claims that mobile phone deals and discounts are exclusive to Flipkart, has drawn the ire of CAIT for its misleading nature and potential harm to India’s small retailers.
The Misleading Advertisement
CAIT’s grievances primarily center around the misleading content of the advertisement. The commercial, as shown in Annexure 1, conveys that deals and discounts on mobile phones are not available in offline stores and are exclusively offered by Flipkart. Such a claim, CAIT argues, is not only false but also detrimental to the interests of traditional retailers who have been a vital part of the Indian economy for decades.
Amitabh Bachchan’s Role
While CAIT expresses deep disappointment in the advertisement itself, it acknowledges that its primary issue lies with Shri Amitabh Bachchan Ji, one of India’s most prominent actors, who endorsed the misleading claim. The letter to Mr. Bachchan, dated September 29, 2023, conveyed the anguish of India’s retailers and emphasized the deceptive nature of the advertisement.
The Request for Action
CAIT seeks immediate and urgent intervention from the Ministry of Consumer Affairs to address this issue. The confederation urges the suspension of the advertisement and the imposition of penalties on both Flipkart and Mr. Bachchan for violating the Consumer Protection Act (CPA), 2020.
Violations Under the Consumer Protection Act (CPA), 2020
CAIT asserts that Flipkart’s advertisement constitutes an “unfair trade practice” under Section 2(47) of the CPA. By materially misleading the public regarding the prices of mobile phones, Flipkart has engaged in an unfair and deceptive practice that adversely affects the goods, services, and trade of other individuals or entities, including offline retailers.
CAIT’s Demands
In its letter, CAIT makes the following requests:
- Direct Flipkart to immediately suspend the advertisement to prevent further harm to India’s offline retailers, who are preparing to offer the best experiences during the upcoming festive season.
- Impose penalties on Flipkart in accordance with Section 89 of the CPA, which includes imprisonment for up to two years and a fine of Rs. 10 lakh, for indulging in false and misleading advertising.
- Impose a fine of Rs. 10 lakh on Mr. Amitabh Bachchan, also under Section 89 of the Act, for his role in the deceptive advertisement.
CAIT emphasizes the importance of maintaining fair competition, truthful representation, and consumer choice in the market, and it looks to the Ministry of Consumer Affairs to take swift and appropriate action in response to this issue.
Conclusion
The Confederation of All India Traders (CAIT) has raised serious concerns about a misleading advertisement featuring Amitabh Bachchan and endorsed by Flipkart. CAIT believes that the ad violates the Consumer Protection Act (CPA), 2020, and is detrimental to traditional retailers in India. The confederation has urged the Ministry of Consumer Affairs to suspend the advertisement and penalize both Flipkart and Mr. Bachchan for their roles in this deceptive campaign. CAIT remains committed to promoting fair competition and consumer rights in the Indian market.
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Confederation of All India Traders
Ref. 3650/1/50 Dated: 03rd October 2023
Smt. Nidhi Khare, IAS
Special Secretary & Chairperson (CCPA)
Ministry of Consumer Affairs,
Krishi Bhawan
New Delhi – 110001
Subject: Urgent action against Amitabh Bachchan and Flipkart for a heartbreaking and misleading advertisement against India’s small retailers
Dear Smt Nidhi Khare ji,
We are writing to you today with a very heavy heart and to express our deep disappointment in Shri Amitabh Bachchan Ji. the biggest movie star of India for openly endorsing Flipkarts misleading and frivolous claim that deals and discounts on mobile phones are not evadable in offline stores and are only available on Flipkart This is shown in Annexure 1. We are not disappointed by Flipkarts action because we know that the single reason why Flipkart (and also Amazon) have entered India is to dismantle the traditional retail industry of India buy burning cash brought in the form of FDI and they have been undertaking activities against us with this intention since they started operations in India in 2009 and 2013 respectively.
We have written a letter to Amitabh Bachchan dated 29th September. 2023, where we have expressed our anguish to him and have informed him that this advertisement is not only misleading and false but also that the advertisement has not gone down well with India’s retailers. who have proved to be the backbone of the Indian economy for decades. We are writing to your good office to seek immediate and urgent intervention to suspend the advertisement and punish both Rioted and Mr. Bachchan for violation of the Consumer Protection Act (CPA), 2020.
As you may be aware, misleading advertisements are not just unethical but also distort competition and manipulate consumer choice This advertisement by Amitabh is unethical because it is false, distorts competition by tilting the consumer in fever of Flipkart by misinforming them and manipulates consumer choice by foreclosing their options to reach out to Physical retailers to buy mobile phones amongst Other things.
As per section 2 (47) of the CPA Flipkart has indulged on an “unfair trade practice’ which is defined as —
(47) “unfair trade practice” means a trade practice which. for the purpose of promoting the sale, use or supply of any goods or for the provision of any service. adopts any unfair method or unfair or deceptive practice including any of the following practices. namely:—
(i) making any statement. whether orally or in writing or by visible representation de including by means of electronic record, which—
(i) Materially misleads the public concerning the price at which a product or like products or goods or service, have been or are, ordinary sold or provided, and for this purpose a representation as to price shall be deemed to refer to the price at which the product or good or services has or have been sold by sellers or provided by suppliers generally the relevant market unless it is the clearly specified to be the price at which the product had been sold or service have been provide by the person by whom or on whose behalf the reorientation is made
(ii) gives falls or misleading facts despairing the goods services or trade of another person.
As per the definition, Flipkart, acting though Amitabh Bachchan (endorser), have misled the public regarding the price at which mobiles phones are being made available by sellers/supplies in the smartphones market of India (relevant market), this has the effect of despairing the goods. services or trade of another person, Further, as per the 4 of the Guidelines for the Prevention of Misleading Advertisement,2022 the advertisement by Flipkart is misleading because it doesn’t contain truthful and honest representation and is wholly incorrect, malicious misleading and manipulative.
In the pursuance of the same, we would like to request you for the following.
1) Pass directions to Flipkart, to immediately suspend this advertisement so that it doesn’t cause any more damage to the sincere efforts being taken by India’s offline retailers to provide best experience in the upcoming festive seasons.
2) Penalise Flipkart as per section 89 of the CPA, for false misleading advertisement with imprisonment for a learn two years and a fine of Rs. 10 Lakh:
3) Penalise Mr. Bachchan with a fine of Rs. 10 lakh as per section 89 of the Act.
Thank you With kind regards
Your truly
Praveen Khandelwal
National Secretary General
Confederation of All India Traders
