The All India Consumer Products Distributors Federation (AICPDF) is worried that FMCG companies are using quick commerce and e-commerce platforms to sell products that are near their expiry dates or aren’t selling well.
AICPDF alleges FMCG firms dumping low-demand products
According to The Hindu Business Line, the group has shared its worries with the Ministry of Consumer Affairs, highlighting three main issues with quick commerce: dumping products on platforms, informing consumers, and negative impacts on retailers.
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“Quick commerce and e-commerce platforms have turned into convenient channels for FMCG companies to offload products nearing expiry or with low consumer demand.
Consumers are lured by attractive discounts and may unknowingly purchase near-expiry products or non-movable stocks that can pose health risks, especially with food and consumable goods. The influx of discounted, near-expiry products on e-commerce and quick commerce platforms creates an uneven playing field, severely impacting traditional retailers. Small and medium-sized retailers cannot compete with the deep price cuts, which affects their financial stability and threatens their survival,” the organisation stated.
FSSAI raid at Zomato warehouse raises concerns
The consumer group has asked the Consumer Affairs Ministry to create regulations, support traditional retailers, and make quick commerce more transparent.
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“Implement strict regulations to monitor and control the sale of near-expiry and non-movable stocks on quick commerce and e-commerce platforms, ensuring that consumers are adequately informed. Second, enforce mandatory and clear labelling for products that are close to expiration and develop policies that prevent unfair competitive practices and support traditional retailers, protecting them from the repercussions of large-scale dumping by FMCG companies,” added AICPDF.
This comes amid the Food Safety and Standards Authority of India (FSSAI) team finding 90 packets of button mushrooms with wrong packaging dates in a raid at Zomato‘s Hyperpure warehouse in Hyderabad recently.
Previously in this month, the Commissioner of Food Safety, Telangana, posted on X that its task force team inspected Zomato Hyperpure in Hyderabad on October 29. They found 18 kg of button mushrooms with a packing date of October 30, 2024, which violated food safety rules.
