Illicit trade, deep discounting hurting small traders, say FRAI members

Retailers in Telangana have raised alarm over the rising circulation of counterfeit products and unfair trade practices, including predatory pricing and deep discounting by e‑commerce platforms.

Hyderabad: Retailers expressed serious concern over the growing circulation of counterfeit products, illegal distribution channels and non-compliant goods across markets.

During a seminar on “Confronting Illicit Trade in Modern Markets” organised by the Federation of Retailers Association of India (FRAI) Telangana State Chapter here on Thursday, retailers highlighted how predatory pricing, deep discounting and unchecked expansion of certain quick commerce and e-commerce models were creating severe imbalances for small retailers and traditional businesses.

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The seminar also highlighted that both illicit trade and unfair market practices are adversely affecting genuine businesses, government revenues, consumer trust as well as the livelihoods of lakhs of small traders across the State.

Participants said flash sales, unrealistic discounting, aggressive pricing strategies along with the constant push for ultra-fast delivery have created an environment where consumers are often unable to differentiate between genuine and counterfeit products.

Central zone ACP R Sanjay Kumar said illicit trade and the unchecked circulation of counterfeit products have become a serious concern not only for businesses and consumers, but also from the perspective of law enforcement and public safety.

“Today, digital platforms and rapid-delivery ecosystems are expanding at an unprecedented pace, but in many cases there is insufficient awareness regarding product authenticity, cyber risks and illegal supply chains. Consumers are often attracted by heavy discounts and instant availability without fully understanding the risks associated with fake, adulterated or non-compliant products,” he said.

FRAI vice president and Telangana chapter president Mohammad Salahuddin Dakhni said small retailers and kirana stores are not just business establishments but are the backbone of India’s local economy and community life. However, the increasing prevalence of unfair trade practices in modern retail markets has been creating serious challenges for traditional retailers, he added.