Is FirstCry.com and/or SBI indulging in unfair business practices through misleading offers and advertisements?
Firstcry.com is in the selling and marketing of mainly baby products which includes clothing, toys, CDs, birthday party supplies, baby diapering, feeding and nursing, bath and skin care, Moms & Maternity, and Gifts etc. As per information available on their website, the company has stated that it handles:- 2 Lakh+ unique products
- 5800 Brands
- 7.5 million registered users
The site has listed only the praising feedback from their consumers, the last feedback being of 8th June 2017. Surprisingly no feedback has been given on their site after 8th June 2017 and also the author could not find any adverse feedback.
However, a recent complaint received from one of the consumer reflects the poor customer services and leads one to believe about their practice of adapting to misleading business through false advertisements in a misleading manner. The consumer has been taking up his grievance with the company as well as State Bank of India, the co-partner in their offer under issue of concern under the guidance of the author of this blog. The analysis of the author leads to believe that the company may be adapting to unethical business practices silently without being noticed by the consumers.
Background
A consumer had placed an order on Firstcry.com during the validity of an offer with following terms and conditions of offer. The offer was displayed on the home page of their app.
1. 5% Instant Discount on only SBI credit cards.
2. Minimum Order Value should be ₹1500
3. Maximum Discount one will get ₹500 as per card.
4. Duration: 16th May to 30th May'2020.
However, when the consumer placed the order online, no instant discount as per S.No. 1 was applied at the time of making payment and that is the main point of consumer concern. .
Point of Concern
The merchant did not apply or grant the instant discount of 5% while making the payment through SBI credit card as per offer of the scheme.
Actions taken by Consumer and analysis
The consumer had taken up the issue with Firstcry.com being the merchant in the transaction and the scheme being as listed on the home page of their app. The response as received from the Firstcry.com was shocking as it has added contradictory terms in their response to the consumer grievance suggesting it to be an after-thought process to cover up their unethical business, contradicting the terms laid down by the credit card issuer i.e State Bank of India (SBI).
In their reply, FirstCry said, "We feel regret that you did not receive the Instant discount on SBI, that instant discount cannot be availed in cases where cash refund, Gift certificate & loyalty cash is used against a order. We would like to inform you please contact SBI as third party offer, and these term and condition are levied by SBI.
The entire communication, till date, between the Consumer, Merchant (Firstcry.com) and the State Bank of India (SBI) could be pursued by clicking the link given below:
Communications between the Consumer and Merchant
Complaint Analysis
Background
A consumer had placed an order on Firstcry.com during the validity of an offer with following terms and conditions of offer. The offer was displayed on the home page of their app.1. 5% Instant Discount on only SBI credit cards.
2. Minimum Order Value should be ₹1500
3. Maximum Discount one will get ₹500 as per card.
4. Duration: 16th May to 30th May'2020.
Detailed terms and conditions pertaining to the said offer as listed out on both FirstCry and SBI websites. The links to the terms and conditions as follows -
1. SBI website - SBI Credit Card Offers
SBI Credit Card Offers
|
2. FirstCry website - https://www.firstcry.com/featuredoffer?cpid=621
The link at FirstCry website does not work anymore. However, a copy of the same has been attached below as screenshot.
The link at FirstCry website does not work anymore. However, a copy of the same has been attached below as screenshot.
However, when the consumer placed the order online, no instant discount as per S.No. 1 was applied at the time of making payment and that is the main point of consumer concern. .
Point of Concern
The merchant did not apply or grant the instant discount of 5% while making the payment through SBI credit card as per offer of the scheme.
Actions taken by Consumer and analysis
The consumer had taken up the issue with Firstcry.com being the merchant in the transaction and the scheme being as listed on the home page of their app. The response as received from the Firstcry.com was shocking as it has added contradictory terms in their response to the consumer grievance suggesting it to be an after-thought process to cover up their unethical business, contradicting the terms laid down by the credit card issuer i.e State Bank of India (SBI).
In their reply, FirstCry said, "We feel regret that you did not receive the Instant discount on SBI, that instant discount cannot be availed in cases where cash refund, Gift certificate & loyalty cash is used against a order. We would like to inform you please contact SBI as third party offer, and these term and condition are levied by SBI.
The entire communication, till date, between the Consumer, Merchant (Firstcry.com) and the State Bank of India (SBI) could be pursued by clicking the link given below:
Communications between the Consumer and Merchant
Complaint Analysis
The Author has pursued the complaint of the consumer as well as the website of Firstcry.com as and the terms and conditions of the financial offer of the credit card issuer i.e State Bank of India (SBI). Initially the consumer was advised to take up his grievance with the Merchant only i.e Firstcry.com. However as the communication progressed, the consumer was finally advised to make a final communication with the credit card issuer i.e State Bank of India also trailing the mails of his communication and the responses thereof with/from Firstcry.com.
The consumer had placed an order based on the terms as listed by clicking on the offer stated in association with State Bank of India. These terms which are affecting the prices of items are listed below:
1. 5% Instant Discount on only SBI credit cards.
2. Minimum Order Value should be ₹1500
3. Maximum Discount you will get ₹500 as per card.
4. Duration: 16th May to 30th May'2020
However, no instant discount of 5% was applied to the order at the time of making online payment. The consumer was advised to initiate grievance process and surprisingly the Merchant after few communication had added another term " Instant discount cannot be availed in cases where cash refund, Gift certificate &
loyalty cash is used against a order". This term was nowhere listed in the detailed terms and conditions, which are displayed when one clicks on the offer, displayed on the home page. It suggests to be an after thought process to cover up their wrong doings and unfair business practices. In one of the communication dtd. 29/05/2020, the Merchant has stated another shocking fact that "We feel regret that you did not receive the Instant discount on SBI, that instant discount cannot be availed in cases where cash refund, Gift certificate & loyalty cash is used against a order. We would like to inform you please contact SBI as third party offer, and these term and condition are levied by SBI."
The terms and conditions as mentioned on the website/app of Firstcry.com as well as on SBI sites were re-studied and in fact the contrary terms to what has been stated in the response of Firstcry.com were revealed.
Point no. 4 under the heading "Other Terms and Conditions", on both FirstCry and SBI websites reads as under-
"All the existing offers, gifts, discounts etc, that are being offered can be availed by the Cardholders as part of this exclusive offer as mentioned in the communication."
As it is revealed above, what Firstcry has been stating is not as per terms stated by credit card issuer (co-partner of the said offer) State Bank of India. It is equally surprising as to how the Merchant Firstcry.com advised the consumer to refer the matter to SBI, the credit card issuer. The credit card issuer is just facilitating the consumer to pay at the pricing terms of the Merchant. Despite above, the consumer was advised to take up his grievance with SBI also with trailed communication as per advise of the Merchant keeping the Merchant in loop with his communication with credit card issuer. It seems the Merchant is trying to cover up its unethical business practices by giving distorted facts and therefore the consumer could be advised to seek alternative legal remedies at the risk and cost of the Merchant and the credit card issuers unless the Merchant and Credit card Issuers resolve the issue satisfactorily.
As per practice of the blog author, the article was mailed to Firstcry.com and State Bank of India for their views/feedback/comment before the article is published. The mail dtd. 1st June 2020 to Firstcry and SBI is quoted below:
"Based on a complaint escalation by a consumer against Firstcry.com and SBI and further analysis, an article is being published on the blog for your kind perusal. You are requested to kindly pursue the article and submit your comments and views so as to incorporate the same in the said article. It is scheduled/ planned to publish the said article on 4th June 2020 in the blog as well as other journals/magazines. The said article after its publication shall also be shared through various social media platforms. It is requested that the comments along with the resolution if any to the complaint may be forwarded by 4th June 2020 so that the same are incorporated in the said article before getting it published on 4th June 2020."
The consumer had placed an order based on the terms as listed by clicking on the offer stated in association with State Bank of India. These terms which are affecting the prices of items are listed below:
1. 5% Instant Discount on only SBI credit cards.
2. Minimum Order Value should be ₹1500
3. Maximum Discount you will get ₹500 as per card.
4. Duration: 16th May to 30th May'2020
However, no instant discount of 5% was applied to the order at the time of making online payment. The consumer was advised to initiate grievance process and surprisingly the Merchant after few communication had added another term " Instant discount cannot be availed in cases where cash refund, Gift certificate &
loyalty cash is used against a order". This term was nowhere listed in the detailed terms and conditions, which are displayed when one clicks on the offer, displayed on the home page. It suggests to be an after thought process to cover up their wrong doings and unfair business practices. In one of the communication dtd. 29/05/2020, the Merchant has stated another shocking fact that "We feel regret that you did not receive the Instant discount on SBI, that instant discount cannot be availed in cases where cash refund, Gift certificate & loyalty cash is used against a order. We would like to inform you please contact SBI as third party offer, and these term and condition are levied by SBI."
The terms and conditions as mentioned on the website/app of Firstcry.com as well as on SBI sites were re-studied and in fact the contrary terms to what has been stated in the response of Firstcry.com were revealed.
Point no. 4 under the heading "Other Terms and Conditions", on both FirstCry and SBI websites reads as under-
"All the existing offers, gifts, discounts etc, that are being offered can be availed by the Cardholders as part of this exclusive offer as mentioned in the communication."
As it is revealed above, what Firstcry has been stating is not as per terms stated by credit card issuer (co-partner of the said offer) State Bank of India. It is equally surprising as to how the Merchant Firstcry.com advised the consumer to refer the matter to SBI, the credit card issuer. The credit card issuer is just facilitating the consumer to pay at the pricing terms of the Merchant. Despite above, the consumer was advised to take up his grievance with SBI also with trailed communication as per advise of the Merchant keeping the Merchant in loop with his communication with credit card issuer. It seems the Merchant is trying to cover up its unethical business practices by giving distorted facts and therefore the consumer could be advised to seek alternative legal remedies at the risk and cost of the Merchant and the credit card issuers unless the Merchant and Credit card Issuers resolve the issue satisfactorily.
As per practice of the blog author, the article was mailed to Firstcry.com and State Bank of India for their views/feedback/comment before the article is published. The mail dtd. 1st June 2020 to Firstcry and SBI is quoted below:
"Based on a complaint escalation by a consumer against Firstcry.com and SBI and further analysis, an article is being published on the blog for your kind perusal. You are requested to kindly pursue the article and submit your comments and views so as to incorporate the same in the said article. It is scheduled/ planned to publish the said article on 4th June 2020 in the blog as well as other journals/magazines. The said article after its publication shall also be shared through various social media platforms. It is requested that the comments along with the resolution if any to the complaint may be forwarded by 4th June 2020 so that the same are incorporated in the said article before getting it published on 4th June 2020."
State Bank of India responded to the mail sent by the blogger stating "This is regarding your communication June 01, 2020 addressed to The Chairman, State Bank of India regarding ..................’s SBI card account.
With reference to concern raised regarding instant discount of 5% not given by First cry on transaction done on SBI Card of Mr. xxxxxxxx, we wish to inform that we have contacted the customer regarding his concern and further details will be shared with cardholder.
In case of any further queries you may visit our website https://sbicard.com, interact with our Chatbot ILA at https://ila.sbicard.com or download the Mobile App: https://sbicard.com/
State Bank of India also confirmed telephonically with the consumer that it would conduct an investigation into such deception meted out to the consumer.
The consumer got telephonic call subsequently from Firstcry and was refunded the extra amount so charged into his Firstcry wallet. However, a single instance of refund doesn't absolve Firstcry from its involvement in deceptive trade practices and misleading advertisement. The refund was possible in this case because of consumer's diligent follow-up under advisement of the author.
The larger question still remains. How many consumers were denied benefits of the advertised offer based on arbitrary conditions imposed by Firstcry? As per Firstcry, this was a third party offer and consumer was advised to approach SBI. If that is the case, why is Firstcry imposing its own conditions in a third party offer? The condition of loyalty cash users being exempt from the offer is arbitrary and in fact, contradictory to the point no. 4 of detailed terms and conditions as advertised. Firstcry had been misleading the consumer for such a long time about lying the ball in the court of the State Bank of India which in the considered opinion of the blogger may not be true as SBI had not given its view on the subject. In case any response is received at a later date, the blog shall get updated accordingly. However, in a very considered opinion of the blogger, Firstcry has been adapting to deceive the consumers. It implies that so many consumer across the countries must have been duped off by the Firstcry. The company if feels should refund back on its own to all those consumers who had purchased their requirement from Firstcry as per the advertisement/scheme. The consumer as referred here if would not have been under the advise/guidance of the blogger and taken action as per advise would have also been deceived like many others.
Meanwhile, the consumer also requested Advertising Standard Council of India (ASCI) to look into such deceptive practices of the Firstcry.com which is under their investigation and the blog shall be updated accordingly.
The post will be updated further as soon as the final response from SBI is received as stated above.
Post Update on 22nd June 2020 (due to response of ASCI)
The Advertising Council of India responded to the consumer's complaint of misleading advertisement on 11th June 2020 and 18th June 2020 as "that the advertiser has indicated that your complaint has been resolved and a refund of the instant discount amount has been provided. Kindly confirm if you have been offered such a discount and the same reflects in your account for order no. 10753048NUN11D1F44."
While the complainant requested ASCI to ensure that the refund to all those consumers should get refunded who have been duped by the Firstcry.com by misleading the consumers. May be the company might have collected crores of rupees as unethical business practices. ASCI remained silent on such unfair trade practices.
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