The Competition Commission of India (CCI) on Monday slapped a fine of Rs 200 crore on Maruti Suzuki for limiting the discounts offered by its dealers and preventing the country’s largest carmaker from indulging in unfair trade practices. instructed.
Passing an order, the fair trade regulator also flagged practices such as appointing ‘mystery shopping agencies’ and preparing ‘mystery audit reports’ as part of implementing the company’s discount control policy. CCI imposed a penalty of Rs 200 crore after it was found that Maruti Suzuki India Limited (MSIL) indulged in anti-resale value maintenance (RPM) practices in the passenger vehicle segment by way of implementing discount control policy than the dealers . Release said.
MSIL had an agreement with its dealers under which the dealers were barred from giving discounts to customers in excess of the discounts fixed by it. In other words, the company had a discount control policy and dealers who wanted to offer additional discounts had to mandatorily take prior approval of the company, as per the regulator.
According to the CCI, any dealer who violated the policy was threatened with fines not only on the dealership, but also on his personal persons including the direct sales executive, regional manager and showroom manager. To enforce the discount control policy, the watchdog said the company employed ‘mystery shopping agencies’ (MSAs), which posed as customers to MSIL dealerships, to find out whether customers were getting any additional discounts. is being given.