All India IT Federation issues advisory to all associations

New Delhi

Indian States are losing tax revenues due to the fact that many market places are exploiting the loopholes of the existing state and federal laws. Predatory prices have created difficult situations for survival of traditional market.

Federation of All India Information Technology associations conducted a meeting on 7^th of November in New Delhi which was attended by dealers from all from all regional IT associations including several state level associations.

A healthy and detailed discussion took place on various manifestos such as predatory pricing, unfair trade practices and the challenges faced by the channel community due to the online business.

Some resolutions were also passed after the discussion, first the associations representing the State of Punjab, TamilNadu, 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 and secondly 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.

As predatory pricing the sale of goods or provision of services at a price which is below the cost is disrupted millions of businesses of IT. Unethical practices of online sales have a deep impact on people engaged in the retail and channel business. Delays in action will lead to erosion of channel business as it is causing heavy unemployment.

In relation to that Indian Information Technology Channels issued an advisory to global

Brands to control predatory pricing tactics of electronic market place and if no action is taken on time then brands have to face non cooperation from November 24, 2014.

Advisory includes MOP (Market Operating Price) and MRP (Maximum Retail Price) to be ensured that they are in line with operating prices at which channels are advised to sell.

It also includes that any incident where the violation of MOP, MRP takes place, the OEMs/Brand 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 from 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.