AIMRA Accuses Croma of Misleading Ads, CCPA Investigation Requested

New Delhi, Mar 30 (PTI) Mobile retailers' association AIMRA has approached Central Consumer Protection Authority (CCPA) for investigation against alleged "misleading advertisement" of Tata group firm Croma on product prices, which are not readily applicable at their store.

An email query to Croma did not elicit any reply in the matter.

All India Mobile Retailers' Association (AIMRA), which claims to represent 1.5 lakh mobile phone sellers in the country, has written to Central Consumer Protection Authority (CCPA) Chief Commissioner Nidhi Khare about the advertisement published in a Marathi daily on May 27.

"This letter serves as a strong and urgent appeal to the Central Consumer Protection Authority (CCPA) to immediately investigate a severely misleading advertisement published today, March 27, 2025, in the Marathi daily newspaper "Lokmat" by Croma, a Tata Group company, in Maharashtra," AIMRA, Founder Chairman, Kailash Lakhyani said in the letter.

According to the letter dated March 27, the advertisement prominently displays a starkly reduced "Offer Price" against "MRP," creating a false impression of substantial discounts.

"However, upon closer scrutiny and as reported by consumers and our member retailers, these advertised prices are often subject to numerous hidden terms and conditions, indicated by inconspicuous asterisks. When consumers inquire about purchasing products at the advertised prices in Croma stores, they are allegedly met with rude behaviour and informed that the advertised prices are not readily applicable, effectively baiting them into the stores under false pretence," the letter said.

AIMRA alleged that the unethical tactic employed by a large corporation like Croma is a blatant violation of consumer rights and demonstrates a clear intent to deceive for the sole purpose of increasing footfall.

"This practice not only defrauds consumers by presenting misleading information but also causes significant distress and frustration when they are denied the advertised prices," the letter said.

AIMRA alleged that this deceptive advertising has a detrimental impact on small and independent retailers across Maharashtra.

"Consumers, having seen the seemingly unbelievable offers in the Croma advertisement, are now visiting standalone shops and demanding the same unrealistic prices. This puts immense pressure on these retailers, who operate on fair margins and cannot compete with such deceptive tactics. They are being unfairly blamed and are suffering financial losses due to Croma's misleading campaign," the letter said.

AIMRA has demanded that the CCPA examine the discrepancies between the advertised prices and the actual sales prices invoices in Croma stores in Maharashtra, take stringent action against the Tata Group firm for engaging in deceptive advertising practices that mislead consumers and harm the livelihoods of small retailers and issue clear guidelines to prevent such misleading advertisements by large retailers in the future.