Ratan Tata-backed smart wearables maker GOQii Technologies said it will take legal action against the deep discounting of its products on Flipkart, which was in violation of its sales agreement with the marketplace. In a legal notice sent to the Walmart-owned online marketplace on Saturday, GOQii said such discounting of its products also violates the foreign investment policy in ecommerce.
The company has reached out to the DIPP and Internal Trade and the Competition Commission of India. GOQii Technologies founder Vishal Gondal said it has an agreement with Flipkart on the sale of its fitness bands. Since the discounts have not stopped even after sending the legal notice, it will now take the marketplace to court.
Gondal said the deep discounting on its products started in the first week of May. Its products were sold at “much below the cost price and against the sales agreement whereby any such discounting is offered at mutual terms,” he said. Gondal has reached out to Flipkart, including the chief executive officer, several times to stop the discounts but to no avail.