The Fast Moving Consumer Goods (FMCG) Retailers’ Association has filed a complaint with the Competition Commission of India (CCI) and alleged that fast-food players are resorting to unfair practices.

The association has flagged business practices such as deep discounting, monopolistic tendencies and predatory pricing deployed by entities in the fast-trading sector, Business Standard reported.

The All India Consumer Products Distributors Federation (AICPDF) has also raised concerns over the operating model of fast-food players regarding the country’s foreign direct investment (FDI) regulations.

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The association said traditional operators face several challenges due to the rapid growth of fast commerce, including the designation of these platforms as direct distributors of FMCG items by several companies.

The issue was initially raised by the federation with the government in August, when the AICPDF wrote to the Department of Trade and Industry about the rapid growth of the fast trade sector.

The matter was referred to the CCI by the Department for Promotion of Industry and Internal Trade (DPIIT) in September. The AICPDF noted that practices such as monopolistic tendencies result in unfair competition, making it increasingly difficult for traditional retailers to compete or survive in the market.

In its letter, the retailers’ body noted: “Q-com platforms operating dark stores appear to intentionally circumvent regulations governing inventory-based e-commerce. We strongly emphasize the creation of a standard franchise law, similar to franchise laws in the United States, to protect the rights of franchisees.

The association emphasizes that by managing significant control over inventory, these platforms appear to be in violation of the law in letter and spirit.

The trade body urged the CCI to begin an in-depth investigation into the operating model of fast trade players and put in place protective measures for traditional distributors and small retailers.