As part of its continued efforts under the Azadi Ka Amrit Mahotsav, the Ministry of Consumer Affairs, Food & Public Distribution has intensified regulatory scrutiny to safeguard consumer interests in the digital marketplace. On 26 September 2025, the Central Consumer Protection Authority (CCPA) took decisive action by imposing a penalty of ₹2,00,000 on M/s Digital Age Retail Pvt. Ltd., the operator of popular e-commerce platform FirstCry, for engaging in misleading advertisements and unfair trade practices.
The Complaint and Investigation
The case was triggered by a consumer complaint that highlighted deceptive pricing practices on www.firstcry.com. The consumer alleged that FirstCry displayed prices as “MRP inclusive of all taxes,” but during the checkout process, additional GST was added to the discounted price. This misleading representation gave consumers the impression that they were receiving a larger discount than they actually were.
An investigation conducted with support from the National Consumer Helpline (NCH) confirmed the complaint and revealed a pattern. For example, products advertised with a 27% discount were, after the GST addition, effectively being sold at an 18.2% discount. This pricing model not only misled consumers but also contravened several provisions of the Consumer Protection Act, 2019, including Section 2(28) (misleading advertisements) and Section 2(47) (unfair trade practices).
Violation of Pricing and E-Commerce Rules
The CCPA found that FirstCry’s disclaimers such as “GST and Add’l charges may apply” did not override the legal requirement that the MRP must be inclusive of all taxes. By showing tax-inclusive prices and then adding GST at checkout, the company engaged in “drip pricing”, a form of dark pattern that was expressly prohibited under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
Furthermore, the company violated Rule 7(1)(e) of the Consumer Protection (E-Commerce) Rules, 2020, which mandates that the total price, inclusive of all charges and taxes, must be displayed upfront.
CCPA’s Directives and Impact
Considering FirstCry’s status as one of the largest online retailers for maternity and children’s products in India and Asia, the CCPA concluded that this practice had widespread and significant impact on consumers.
The authority ordered FirstCry to:
- Ensure all original and discounted prices are shown inclusive of all taxes;
- Clearly disclose any additional charges such as delivery or convenience fees;
- Cease the misleading practice permanently, even though it was reportedly discontinued during the investigation.
Company Compliance and Platform Updates
Following the CCPA’s intervention, FirstCry has implemented changes across its website and mobile app. The platform now prominently displays that prices are inclusive of all taxes, and the final payable amount is shown clearly, ensuring full transparency for consumers.
This case serves as a strong reminder that transparency, truthful pricing, and fair trade practices are not optional in e-commerce. The CCPA’s enforcement sets a precedent for other online retailers and reinforces the government’s consumer-first approach in the digital economy.