Flash sale fraud by e-commerce websites.

[Harsh Deswal]

Xiaomi is using cheap strategy to sell it’s products. Flash sales promote illegal activity

Disguising public with the flash sales of it’s products and promoting illegal sales in black marketing Xiaomi again is cheating not just Government of India but also it’s consumers.

Product is not available on flash sales both at flipkart and mi store and is shown ‘out of stock’. This not only waste precious time of citizen of India but also tricks them to believe that products like redmi note 5 pro etc. are sacred. The practice is as cheap as it could get and misguides consumers on false promises. No proper information regarding sales data and availability of products in sale are provided.

Now the product is available for pre booking at additional costs (unrevealed minimum value is 500 rupees) than MRP. That is simply not justified as per taxation system in India.

We urge Government of India to take necessary action against the malpractices in trade and exploitation of consumer sentiments. Xiaomi has played with sentiments of consumer in India and that invites proper legal award. We hope Government of India will curb the malpractice of flash sale.

I registered my concern at national consumer helpline portal. I sent an email to the company as suggested by portal.

Sent: Wednesday, April 4, 2018 7:10:29 AM
To: Xiaomi Customer Service of India
Subject: Expressing highest level of dissatisfaction regarding the flash sales.

I am Harsh Deswal, previously an admirer of Xiomi products but now after the experience with flash sale of Redmi Note 5 pro 4 GB black variant, I express my utter dissatisfaction. I have attended all flash sales be it on flipkart and mi store with both platforms website based and application. But not a single time the product was available even with good internet connection and persistent efforts.
Although it is evident that black marketing of the products available in flash sales is very high.
Therefore to express my and others dissatisfaction facing the issue, I have filed a petition regarding the same with National Consumer Helpline Number with the docket number 662707.
I will be thankful if you follow fair trade practice in India.
I had already shared my concern with the twitter handle of yours earlier. Visit: https://goo.gl/YjDgim for details.
Yours truly
Harsh Deswal
MI user ID: 1553544738

from: Xiaomi Customer Service of India <Service.in@xiaomi.com>
date: Fri, Apr 6, 2018 at 9:02 AM
subject: Expressing highest level of dissatisfaction regarding the flash sales. WO:ISIN2018040401183-2D34
mailed-by: xiaomi.com

Hi Harsh,

Greetings from Mi India Customer Support. My name is Mohammed.

I would like to inform you that the sale is conducted on a first come first serve basis and continues till the stocks last and there will be a limited number of stocks.

I would request you to participate in our next flash sale in mi.com and flipkart sale will be on 06/04/2018 mi.com and flipkart at 04:00 pm, so that this time you may get the order successfully placed.

Please Note :- You will receive an email after 24 hours asking for your feedback. Please do not forget to share feedback with us. Your feedback will help us improve our services.

Thank you for contacting Mi India Customer Support.

Regards,
Mohammed
Mi India Customer Support
Website: http://www.mi.com/in
Facebook:https://www.facebook.com/XiaomiIndia/
Web Chat Service:http://www.mi.com/in/service/online
Hotline: 1800 103 6286

to: Xiaomi Customer Service of India <Service.in@xiaomi.com>
date: Sat, Apr 7, 2018 at 3:50 PM
subject: Re: Expressing highest level of dissatisfaction regarding the flash sales. WO:ISIN2018040401183-2D34

Again, disappointed. I don’t think you read my email correctly because for Redmi noye 5 pro back variant there wasn’t any sale at 4 pm. Though, I participated in 12 noon sale but again out of stock even before buy now option appeared.

What should be done so that the flash sale practice is curbed. If it prevails then how to bring following reform.
1 There should be maximum quantity of product per account rule to avoid black marketing.
2 There should be exact information sharing prior to sale that so and so product (clearly stating exact specification about the variants) and in what quantity will be available in the particular sale. This will justify first come first serve policy to some extent.
3 FLIPKART has not provided time to complete transaction even when the product was added to cart by customer. There must be sufficient time allowance for customers to place order. It will not only promote fair trade but will reduce customer dissatisfaction.

[Dr. Ashok Dhamija]

What you have mentioned, may perhaps come under anti-competitive agreements, as it appears to be forming a cartel to control the supply of goods or price rigging, as mentioned in Section 3 of the Competition Act, 2002.

There may also be violation of the law/ rules relating to MRP, if price at which the goods are being sold are more than MRP. See, my reply (for more information): What action can be taken against shopkeeper charging more than MRP price?

Thirdly, there may be a possibility that a criminal offence such as cheating is committed.

As per our Forum policy guidelines, it is not possible for us to go into the detailed facts of a case. You can examine the above possibilities in the light of detailed facts of your case, if necessary, by consulting some local lawyer by showing him all the relevant details.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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