Fake Festive Discounts: How Can Consumers Identify Inflated MRP and Misleading Offers

Festive shopping in India is often associated with attractive discounts, limited-period offers and special promotional campaigns. During occasions such as Diwali, Dussehra, Raksha Bandhan, Christmas and New Year, retailers and e-commerce platforms compete to attract customers through advertisements promising substantial savings. Products are displayed with crossed-out prices, large discount percentages, countdown timers and claims such as “up to 80% off”. These promotions create excitement and encourage consumers to make purchases before an offer expires.

However, not every advertised discount represents a genuine reduction in price. Some sellers may use inflated reference prices, misleading MRP comparisons, unclear promotional conditions or additional checkout charges to make an ordinary price appear like an exceptional bargain. A product advertised at 60% off may have been available at nearly the same selling price before the festive campaign. In other situations, the discount may apply only to selected products, smaller sizes or outdated models, while the advertisement creates the impression that the entire collection is included.

These practices can make it difficult for consumers to understand the actual value of an offer. The problem becomes more significant during major shopping seasons, when customers purchase electronics, clothing, home appliances, groceries, beauty products and gifts under time pressure. Understanding how pricing works, checking the actual selling price and recognising misleading promotional techniques can help consumers make informed decisions. Consumer protection rules in India also provide safeguards against certain forms of unfair trade practices and deceptive advertisements.

Understanding the Difference Between MRP and the Actual Selling Price

Maximum Retail Price, commonly known as MRP, is the maximum price at which a pre-packaged commodity can be sold to consumers. Under India’s Legal Metrology framework, the MRP declared on a packaged product includes applicable taxes. A retailer may sell a product below its MRP, but cannot charge more than the declared MRP for that packaged commodity.

For example, if a packaged product carries an MRP of ₹2,000, a retailer may offer it for ₹1,700 or ₹1,500. The difference between the MRP and the selling price represents the reduction offered to the consumer. However, the existence of an MRP does not automatically establish that the discount is attractive or that the product was previously sold at the printed price.

This distinction is particularly important during festive sales. Consumers often interpret the difference between MRP and the advertised price as the amount they are saving. Yet, the more meaningful comparison is between the current selling price and the product’s genuine recent market price. If a product normally sells for ₹1,500 but is advertised at ₹1,499 against an MRP of ₹3,000, the displayed 50% discount may create a misleading impression of exceptional savings.

MRP provides a maximum retail price reference, not proof of the product’s regular transaction price. Consumers should therefore examine the actual selling price and compare it with prices available from other authorised sellers.

How Inflated MRP Creates the Illusion of Large Discounts

Inflated MRP comparisons can make ordinary prices appear unusually attractive. A seller may display a high reference price and then advertise a substantial reduction from that amount. Consumers who focus primarily on the percentage discount may assume that the product is being offered at a significantly lower price than usual.

Consider a pair of headphones displayed with an MRP of ₹5,000 and a festive price of ₹2,500. The advertisement suggests a 50% discount. However, if the same model has consistently sold for approximately ₹2,600 across several retailers, the actual saving is much smaller than the advertisement suggests.

Another concern arises when consumers compare products without checking their exact specifications. A retailer may advertise a high discount on one model while displaying a similar-looking product with different features, storage capacity, manufacturing specifications or accessories. The products may appear identical in promotional images even though their actual market values are different.

Consumers should also understand that a high MRP is not automatically evidence of wrongdoing. Manufacturers establish declared retail prices within the applicable legal framework, and sellers may offer legitimate reductions. The important question is whether the price comparison and promotional representation create a truthful picture of the deal. A discount claim should not mislead customers about the product’s genuine price or the savings they can reasonably expect.

Common Types of Misleading Festive Discount Practices

Artificially High Reference Prices

One of the most recognisable promotional techniques involves displaying an unusually high original price beside a much lower festive price. The crossed-out figure attracts attention and makes the current price appear more valuable.

Consumers may find it difficult to determine whether the reference price reflects a genuine previous selling price, a declared MRP or a promotional comparison. These are not interchangeable concepts. An advertisement that presents an inflated or misleading reference price can distort the consumer’s understanding of the actual discount.

Discounts Available Only on Selected Products

Promotional banners frequently advertise statements such as “up to 80% off” or “flat 60% discount”. However, the highest discount may apply to only a small number of products. Most items may receive considerably smaller reductions or may be excluded from the campaign.

For example, a fashion retailer may advertise discounts of up to 70%, while popular sizes, recently introduced collections and premium products receive much smaller reductions. Consumers should check the individual product page rather than assuming that the headline discount applies to every item.

The words “up to” are important because they indicate a maximum possible discount rather than a guaranteed reduction across the entire catalogue. However, the overall advertisement should still provide a fair impression of the offer.

Additional Charges at Checkout

A product may appear affordable on its listing page but become more expensive when the customer reaches checkout. Delivery fees, platform charges, handling costs, optional services and other applicable charges can change the final payable amount.

This practice becomes particularly concerning when important price components are revealed only after the consumer has invested time selecting products or entering personal information. Such practices may fall within the broader problem of drip pricing, a recognised dark pattern under India’s consumer protection framework.

The Central Consumer Protection Authority has specifically addressed dark patterns, including practices that conceal or gradually reveal charges. Consumers should therefore evaluate the complete checkout amount rather than relying only on the promotional price displayed in an advertisement.

False Urgency and Countdown Timers

Festive advertisements often use countdown clocks, limited-stock notifications and messages such as “offer ending soon” to encourage immediate purchases. Genuine limited-period offers are common, but misleading urgency can prevent consumers from comparing prices or examining product details.

A countdown timer that repeatedly resets, or a supposedly limited offer that remains unchanged for an extended period, may indicate that the urgency is promotional rather than genuine. Consumers should avoid treating every countdown as proof that an opportunity will disappear permanently.

Misleading Bank and Coupon Discounts

Some advertisements combine several reductions to display a large final discount. A product may have a basic price reduction, an additional bank offer, a coupon benefit and a cashback promotion. Although these benefits may be genuine, the total advertised saving may depend on conditions that are not immediately visible.

For example, a bank discount may apply only to selected cards, transactions above a minimum amount or a limited number of purchases. Cashback may be credited later rather than reducing the amount payable at checkout. Consumers should distinguish between an immediate price reduction, a conditional discount and a future benefit.

How Consumers Can Identify Genuine Festive Discounts

Compare Prices Across Multiple Sellers

One of the most effective ways to evaluate a festive offer is to compare the exact product across several authorised retailers. Checking the same model number, size, colour, storage capacity and product specifications helps prevent misleading comparisons.

If an electronic product is advertised at ₹25,000 against an MRP of ₹40,000, consumers should examine what other sellers are charging for the same model. If several established retailers are already offering it between ₹24,000 and ₹26,000, the advertised discount may not represent an unusually favourable deal.

Price comparison should also consider seller reliability, warranty coverage, delivery conditions and return policies. A slightly lower price from an unfamiliar seller may not offer the same level of protection as a purchase from an authorised retailer.

Check the Product’s Historical Price

A product’s previous selling price can provide more useful information than its displayed MRP. Consumers can monitor prices before major sales or use reputable price-tracking services where historical information is available.

For example, if a refrigerator has been available for ₹32,000 for several weeks and its festive price becomes ₹31,999, the advertised reduction from an MRP of ₹45,000 should not be interpreted as a major new saving.

Historical price information may not always be complete or independently verified, so consumers should compare more than one source where possible. The objective is to establish whether the current price is genuinely lower than the price at which the product was recently available.

Read the Complete Offer Conditions

Discount advertisements may include important conditions related to payment methods, minimum order values, selected product categories, membership subscriptions or limited quantities. These conditions can significantly affect the final benefit.

A bank offer may be available only to customers using a particular card, while a coupon may require a minimum purchase of ₹5,000. A cashback promotion may also involve a waiting period or a maximum benefit limit.

Consumers should read these conditions before making payment. A discount is useful only when the customer can actually qualify for it and understands how the benefit will be provided.

Examine the Final Checkout Price

The final payable amount is more important than the discount percentage displayed on the product page. Before completing a purchase, consumers should check the price after applicable delivery charges, platform fees, taxes and other disclosed costs.

For pre-packaged commodities, the declared MRP is inclusive of applicable taxes. A retailer cannot simply add GST over and above that MRP. In September 2025, the Central Consumer Protection Authority imposed a ₹2 lakh penalty on Digital Age Retail Pvt. Ltd., which operates FirstCry, over misleading price representations involving additional GST charged at checkout despite the advertised MRP being described as inclusive of taxes. The authority found that the representation overstated the discount and misled consumers about the actual payable amount.

This case demonstrates why checking the final price is essential. Consumers should not assume that a large discount displayed on a product page accurately represents the saving they receive at checkout.

Verify Product Specifications and Seller Details

A genuine discount on an older product model may not provide the same value as a smaller discount on a newer version. Consumers purchasing electronics should compare model numbers, manufacturing details, warranty conditions and technical specifications.

For clothing and footwear, size availability, fabric composition and return conditions deserve attention. For packaged groceries and personal care products, net quantity, manufacturing details, expiry information and unit price can influence whether an offer represents genuine value.

The seller’s identity also matters. Consumers should verify whether the product is being sold by the brand itself, an authorised retailer or a third-party marketplace seller. A very low price should not encourage customers to ignore product authenticity and warranty protection.

Understanding India’s Consumer Protection Framework

India has several legal provisions intended to protect consumers from misleading advertisements, unfair trade practices and incorrect pricing representations. The Consumer Protection Act, 2019 provides the foundation for addressing misleading advertisements and unfair trade practices. It also established the Central Consumer Protection Authority, which has powers to investigate matters affecting consumer rights and take action against misleading commercial practices.

The CCPA’s Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 establish requirements concerning truthful advertising and the manner in which claims are presented. Advertisements should not create misleading impressions through false descriptions, exaggerated representations or important omissions.

The Guidelines for Prevention and Regulation of Dark Patterns, 2023 address manipulative digital interface practices. These include drip pricing, false urgency, basket sneaking and other techniques that may influence consumers into making decisions that are not in their interests.

The Legal Metrology (Packaged Commodities) Rules, 2011 also require important declarations on applicable pre-packaged commodities. These include product identity, net quantity, MRP inclusive of taxes and consumer care information. The Department of Consumer Affairs has clarified that MRP on pre-packaged commodities includes applicable taxes and that GST should not be charged over and above it.

These provisions are important because misleading discounts are not simply a matter of poor shopping decisions. Depending on the circumstances, false price representations and deceptive promotional practices may raise legal concerns under consumer protection and legal metrology requirements.

What Consumers Should Do When They Encounter Misleading Offers

Consumers who suspect a misleading discount should preserve evidence before making a complaint. Screenshots of the advertisement, product listing, displayed MRP, final checkout price and relevant offer conditions can help establish what was represented at the time of purchase. An invoice and payment confirmation are particularly important if the dispute involves an additional charge or an incorrect amount.

The National Consumer Helpline provides a channel for consumers to raise individual grievances. In India, consumers can contact the helpline through its official website or by calling 1915. Complaints may also be registered through the available digital channels, including the official helpline platform.

Consumers seeking formal redress through Consumer Commissions can use the government’s e-Jagriti platform. The appropriate route depends on the nature of the grievance and the relief being sought. For serious or repeated misleading practices affecting a wider group of consumers, the Central Consumer Protection Authority may also take action within its statutory powers.

A complaint should clearly describe the advertised offer, the actual amount charged, the relevant product details and the difference between the representation and the transaction. Providing dated screenshots and supporting documents makes it easier to examine the issue.

Why Festive Shopping Requires Greater Consumer Awareness

Festive shopping combines emotional excitement with commercial pressure. Consumers often purchase gifts for family members, replace household appliances, buy clothing for celebrations or take advantage of annual sales to manage larger expenses. Retailers understand that customers may be more willing to make quick decisions during these periods.

Digital platforms intensify this behaviour through personalised advertisements, app notifications, promotional messages and recommendations based on browsing activity. Repeated exposure to discount claims can make consumers feel that a product is unusually affordable even when its actual market price has changed very little.

Consumer awareness should therefore focus on value rather than promotional language. A genuine saving depends on the product’s quality, actual selling price, usefulness, warranty and long-term reliability. Buying an unnecessary product at a large advertised discount does not automatically represent financial savings.

Retailers and online marketplaces also have a responsibility to maintain transparent pricing practices. Clear reference prices, visible conditions, accurate MRP declarations and upfront disclosure of charges can help build consumer confidence. Trustworthy promotional campaigns should allow customers to understand what they are paying for without requiring them to investigate hidden conditions after reaching checkout.

The Future of Transparent Pricing and Consumer Protection

The growth of digital commerce is creating new opportunities for improving price transparency. E-commerce platforms could provide clearer information about recent price movements, seller history and the conditions attached to promotional discounts. Better product comparison tools could help consumers distinguish between genuine price reductions and ordinary market prices presented as special offers.

Technology may also support regulatory monitoring. Data analysis tools could help identify unusual pricing patterns, repeated promotional claims and possible inconsistencies between advertised prices and checkout amounts. However, automated monitoring should support proper investigation rather than treating every unusual price movement as evidence of misconduct.

Greater transparency will also depend on responsible business practices. Retailers should ensure that discount claims are supported by accurate information, that important conditions are visible and that the final payable amount is communicated before the consumer confirms the transaction. Consumers, meanwhile, need accessible information that allows them to make decisions without unnecessary pressure.

Conclusion

Fake festive discounts and misleading price comparisons can make consumers believe they are saving more money than they actually are. Inflated reference prices, unclear MRP comparisons, conditional bank offers, hidden checkout charges and artificial urgency can all distort the perceived value of a promotional campaign.

Consumers can protect themselves by comparing the exact product across retailers, checking historical prices, reading offer conditions, verifying product specifications and examining the final checkout amount. Understanding the difference between MRP and the actual market selling price is particularly important when evaluating advertised savings.

India’s Consumer Protection Act, CCPA advertising guidelines, dark pattern regulations and Legal Metrology rules provide important safeguards against misleading commercial practices. Consumers can use the National Consumer Helpline and formal consumer grievance mechanisms when they encounter suspicious pricing or unfair promotional representations.

Ultimately, a genuine festive offer should provide a real financial benefit rather than simply create the appearance of one. Informed purchasing decisions, transparent advertising and effective consumer protection can help make festive shopping safer, fairer and more trustworthy.

Online Internship with Certificate