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FMCG firms under MRTPC scanner

FMCG firms under MRTPC scanner
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First Published: Sun, May 04 2008. 12 46 PM IST
Updated: Sun, May 04 2008. 12 46 PM IST
PTI
New Delhi: Cracking whip on FMCG companies for reducing weight without slashing prices, fair trade regulator MRTPC has directed a probe into the issue.
Taking cognizance of recent reports, the Monopolies and Restrictive Trade Practices Commission has directed its investigative arm DGIR to look into Fast Moving Consumer Goods (FMCG) manufacturers’ reducing the grammage of their products without a corresponding cut in prices.
According to sources, the Commission has also observed that the manufacturers did not even bothered to inform the public about decrease in the volume.
“No steps were taken to inform the consumers about the reduction in the weight. The producers are passing the smaller quantities for the same price, which is not exactly achieved by the consumers,” said sources in the Commission.
The Commission is suspecting that it is prima facie appearing to be a deceptive practice by manufacturers. Whenever there is a slight reduction in the price, the companies announces it with much fanfare in electronic and print media, but in this case they even did not bother to put a notice.
This is an “unfair trade practise” under section 36 A of the MRTP Act, 1969.
Recently, Biscuit manufacturer Parle G has landed under MRTPC net as it was allegedly selling reduced quantity of biscuit on the same price, without even giving proper notice to consumers.
The Commission has already started judicial investigation against the Ramesh Chauhan firm after issuing notice of enquiry.
The Director General of Investigations and Registration (DGIR) would soon send enquiry notices to the companies asking them to furnish details.
The Commission has given 90 days to DGIR to complete its probe and to submit its investigation report.
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First Published: Sun, May 04 2008. 12 46 PM IST
More Topics: MRTPC | FMCG | Parle G | Prices | Corporate News |