Quick commerce: All India Consumer Products Distributors Federation knocks on CCI door
The Federation of All Distributors of India (AICPDF), which is the Distributors’ Federation, has filed a case against rapid trade businesses with the Indian Competition Commission on Thursday.
According to sources, AICPDF has filed a motion against rapid commercial companies in anti-legal practice, including Zetto, Blinkit, BigBasket and Swiggy Instamart Deep Discount and called on them to handle them.
According to him, AICPDF is a non-governmental organization consisting of various FMCG companies, distributors and members as members of the Association.
“All commercial associations will also submit such motions against fast trade firms with CCI,” said the acquaintance.
In his motion, AICPDF is understood that it has been concerned about the uncontrolled growth of rapid trading firms and their impact on small Kirana stores.
“No one is against Quick Commerce or e-commerce companies. But they should have existed and allow the function of traditional brick and mortar kirana shops, “said the source, saying that more consumers prefer to order these programs. “It simply came to our notice then. Meanwhile, the discounts given by these companies are based on a monetary combustion model, “the source said.
According to the report of Elara, the motion asked CCI to resolve the rapid trade platforms on the cutting price of alleged prices and demanded a minimum retail price (MSP) citing Kirana stores.
“AICPDF 1) has demanded a 10% price floor for MRP for FMCG products, 2) 2-3% tax for MRP for non-FMCG Õ¥Ö‚ 3) on e-commerce and additional offers. However, it said that the fulfillment of these requirements is very unlikely, given the MSP concept around the world, the floor can delay investments, and it can involve investments that may include investments.
The clothes of rapid trade and electronic trade on the traditional stores have repeatedly increased by a number of retail and distributors’ associations, including a deep discount, predatory pricing, as well as fast delivery models. In the past, AICPDF wrote to CCI, calling for a comprehensive investigation into the operating models of fast trade platforms, and they are in line with foreign direct investment.