FMCG Cos. Using Quick Comm Platforms To Dump Near-expiry Products: AICPDF
“This practice not only jeopardises the livelihood of small and medium retailers but also poses significant risks to consumers," it adds
The All India Consumer Products Distributors Federation (AICPDF) has expressed serious concerns about fast-moving consumer goods (FMCG) companies using quick-commerce platforms to dump non-movable stocks and near-expiry products, frequently under the premise of steep discounts.
According to the industry association that advocates for FMCG distributors in India, customers may unintentionally buy near-expiry goods or non-movable inventory that could harm their health, particularly regarding food and consumables, after being seduced by alluring discounts.
The problem is made worse by unclear labels and opaque information.
AICPDF recently issued a statement to the Ministry of Consumer Affairs alerting them to the fact that ecommerce and quick-commerce platforms are turning into easy places for products that are about to expire to be dumped.
“We are witnessing an alarming trend where manufacturing companies are flooding the market with near-expiry and non-movable stocks, leveraging consumers with substantial discounts to push these products,” AICPDF said.
“This practice not only jeopardises the livelihood of small and medium retailers but also poses significant risks to consumers who may unknowingly purchase compromised products.”
According to the AICPDF, conventional merchants are negatively impacted by the flood of low-priced, soon-to-expire goods on ecommerce and rapid commerce platforms, which creates an unfair playing field.
It should be mentioned that AICPDF just filed a legal complaint alleging exploitative pricing practices against rapid commerce platforms such as Blinkit, Zepto, and Instamart with the Competition Commission of India.
According to the AICPDF, the rapid growth of quick commerce combined with the economic slump has caused an estimated two lakh kirana outlets to close in the past year.
