The All India Consumer Products Distributors Federation has voiced deep concerns about a troubling trend, where fast-moving consumer goods companies are allegedly utilising quick commerce and e-commerce platforms to offload near-expiry and slow-moving stock. The federation has appealed to the Ministry of Consumer Affairs to enforce stricter regulations that could curb such malpractices.
"Manufacturing companies are flooding the market with products that are close to their expiration dates. This practice, often masked by steep discounts, poses a serious threat to both consumer rights and the stability of the traditional retail market," AICPDF said in a statement on Tuesday.
Especially with consumable goods, consumers may unknowingly purchase near-expiry products or non-movable stocks lured by attractive discounts that can pose health risks, the federation noted.
Criticising companies for using the quick delivery platforms as "dumping yards", AICPDF stated that this practice has created an uneven playing field, severely impacting traditional retailers. "Small and medium-sized retailers cannot compete with the deep price cuts, which is affecting their financial stability and even threatening their survival," the federation said. These convenience platforms, touted as game changers, are increasingly being exploited as loopholes by the packaged goods industry, it added.
To address these challenges, AICPDF has urged the government to implement regulatory frameworks mandating clear expiry labeling on quick and e-commerce platforms, helping consumers make informed decisions. The federation also called for policies to prevent unfair competitive practices.
The current appeal follows AICPDF's complaint to the Competition Commission of India, accusing quick commerce players Blinkit, Swiggy, and Zepto of predatory pricing. Responding to the problem, the government has already issued notices to nine e-commerce and quick commerce companies, including Blinkit, Swiggy Instamart, Zepto and JioMart.
Officials told NDTV Profit that they have expanded their probe over expiry date violations. They are currently examining the complaints received against companies such as Hindustan Unilever Ltd., Amul, Patanjali, Dabur India Ltd., Nestle India Ltd., Nature's Basket and Haldiram's for non-compliance with the Legal Metrology (Packaged Commodities) Amendment Rules, 2017. The rules mandate mentioning 'best before or use by the date, month and year' on online platforms. The government is expected to take action against FMCG companies as well, according to the official.
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