The Competition Commission of India imposed a penalty of Rs.
The Competition Commission of India imposed a penalty of Rs. 200 crore Maruti Suzuki India Ltd. (MSIL) for indulging in unfair business practices by restricting dealers from offering discounts to customers.
The CCI found that MSIL had a discount control policy for dealers, whereby dealers were discouraged and avoid giving any extra discounts to the customers beyond what was permitted by the company.
The company urged that it has worked always in the best interests of the consumers to which the CCI contended that MSIL has made it mandatory to get prior approval from them before the dealership offers any discount, not only the dealer but its individual persons, including sales executive, regional manager, showroom manager, etc were threatened with the imposition of a penalty if in violation of discount policy.
Further, the CCI noted that MSIL had appointed mystery shopping agencies who used to pose as customers MSIL dealerships to find out if any additional discounts were being provided to the customers.
The CCI has also passed an order to “cease and desist” against the company.
