Maruti Suzuki fined for Rs200-crore details here!
Maruti Suzuki was fined Rs 200 crore by the Competition Commission of india (CCI) for limiting discounts given by its dealers. The country's largest automaker has been ordered to stop engaging in unethical commercial practices. After establishing that maruti had engaged in anti-competitive Resale Price Maintenance (RPM) in the passenger car market by employing a discount control policy vis-à-vis dealers, the watchdog slapped the penalty.
As part of implementing the company's discount control strategy, the fair trade authority also identified activities including employing "Mystery Shopping Agencies" and generating "mystery Audit Reports." maruti Suzuki india Ltd (MSIL) had an agreement with its dealers that prohibited them from giving consumers discounts that were not specified in the agreement. In other words, according to the regulator, the firm had a discount control policy, and dealers who wished to provide extra discounts were needed to get the company's prior consent.
According to CCI, dealers who give discounts in excess of the allowed limit data-face penalties under the discount control programme. The penalty was purportedly imposed not only on the dealership, but also on employees such as Direct Sales Executives, Regional Managers, Showroom Managers, and Team Leaders.
As part of implementing the company's discount control strategy, the fair trade authority also identified activities including employing "Mystery Shopping Agencies" and generating "mystery Audit Reports." maruti Suzuki india Ltd (MSIL) had an agreement with its dealers that prohibited them from giving consumers discounts that were not specified in the agreement. In other words, according to the regulator, the firm had a discount control policy, and dealers who wished to provide extra discounts were needed to get the company's prior consent.
According to CCI, dealers who give discounts in excess of the allowed limit data-face penalties under the discount control programme. The penalty was purportedly imposed not only on the dealership, but also on employees such as Direct Sales Executives, Regional Managers, Showroom Managers, and Team Leaders.