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IT Channel advises brands to control predatory pricing issue

Federation of All India Information Technology (IT) Associations conducted a meeting recently to discuss on the predatory prices, unfair controltrade practice, and the challenges faced by the channel community due to online trading. The meeting was attended by leaders from all regional IT associations including state level associations.

In the meeting, Indian Information Technology (IT) channels advise global brands to control predatory pricing tactics of e-commerce industry or face non cooperation from November 24, 2014. The association has passed the following resolutions:

The Associations representing the State of Punjab, Tamil Nadu, Chandigarh and one district level association in Maharashtra who had stopped purchases from Distributors till resolution of the predatory pricing issue were advised to call off their voluntary restraint and commence business with Distributors with immediate effect.

All OEMs, Brands, National Distributors are hereby advised that they should appreciate the problems being faced by the channel community and take the following compliance action on or before 24 November , 2014

a)Ensure that MOP ( Market Operating Price) and MRP ( Maximum Retail Price) are in line with operating prices at which channels are advised to sell. Several local and global brands have taken corrective and preventive action to ensure that online marketplaces do not undercut prices directly or through their sellers. All Brands / OEMs have their rights within law to do so and are advised to put a system in place.

Any incident where violation of MOP, MRP takes place the OEMs/ Brand / NDs ( National Distributors ) must immediately take corrective action by ensuring that online marketplace / or their partners/sellers are immediately brought to books . Such seller / online markeplace must be prevented from doing such transactions again.

All Brands/OEMs/NDs are advised to comply with the above guidelines by 24 November, 2014 . While the channel Associations all over India will continue to do business with such Brands/OEMs/NDs who comply with the above requirement, the entire channel community across India will stop doing business with Brands/OEMs/NDs who do not comply with the above guidelines.

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