The anti-profiteering watchdog concluded that the dealer had raised prices of products for which the GST rates had been slashed to 18% from 28% with effect from November 15 last year.
The National Anti-profiteering Authority (NAA) found Delhi-based dealer of French cosmetic brand L’Oreal guilty of profiteering and slapped a fine of Rs 3.43 lakh – the amount earned by the entity through profiteering.
The distributor has been asked to deposit the amount in the Consumer Welfare Fund (CWF) with an interest of 18%.
The anti-profiteering watchdog concluded that the dealer had raised price of products for which the GST rates had been slashed to 18% from 28% with effect from November 15 last year.
The dealer pleaded that the pricing was controlled by the manufacturer and it had no say in reducing the base price of products to accommodate rate cuts. However, in its response, L’Oreal said it had instructed all its distributors to cut prices so that the rate cut benefit could reach consumers. The company also contradicted the distributor’s claim that it had no say in changing pricing in the software.
Separately, the NAA passed four more orders on Friday against companies that were accused by the Kerala state screening committee of profiteering. However, the NAA exonerated these companies after it found no evidence of profiteering on the part of accused firms.