Govt May Take Action Against Maruti For Unfair Trade Practice

In an email response to ET's query, a Maruti Suzuki spokesperson defended its marketing strategy, saying its "accepting bookings for the Ciaz is in no way an unfair trade practice and nor does it violate consumer rights". The booking is completely voluntary for customers and entirely at their discretion, the spokesperson said.

"The company accepts a token amount which is adjusted against the price of the car at the time of purchase. Customers are free to cancel their booking at any stage in which case the token booking amount is fully refunded." Mahindra & Mahindra, which recently launched its new-generation Scorpio sport-utility vehicle with a similar strategy, declined to comment.

Even few other carmakers such as Honda with the Amaze and Mobilio, Hyundai with the i10 Grand and Tata Motors with Zest have invited bookings without revealing prices and technical specifications. Legal experts aren't sure whether the ministry and Trivedi have a strong case.

"The customer can file a complaint that the strategy of Maruti Suzuki violates the rights of consumer guaranteed under the Consumer Protection Act 1986, but the (consumer disputes redressal) forum will take up an issue in totality," said Chandubhai Mehta, managing partner of Mumbai-headquartered law firm Dhruve Liladhar & Co. "The complainant will have to prove that this is not a normal practice within the trade and the company is unfairly treating its potential customers."