Club Factory, an e-commerce store, accused of targeting Snapdeal. They displayed ads stating, “everything cheaper than Snapdeal”. Hence, the court directed Club Factory to pull back the advertisements pointing snapdeal. It also stated that the by-line should be removed from all social media channels and other media as well.
In response to this, Chinese ecommerce platform has decided to take a step back on misleading advertisements. It had taken down the ad on March 11, 2020, after the court’s first warning. Howevere, things didn’t stop there. Snapdeal alleged that Club Factory had violated the high court’s order by replacing the word “cheaper” with “lower”, so they new tagline read “everything lower than Snapdeal”. Club Factory highlighted that it discontinued that ad from June 4, 2020. It also promised not to involve with play of words or use similar expressions.
Club Factory’s Accusations
Well, its not uncommon to see such battles between both the companies. In the month of February, Club Factory was accused of using Snapdeal’s trade secrets, financial data and confidential information. This happened after hiring an ex-employee of Club Factory.
Club Factory has been facing accusations for many other acts. Sale of fake products was one of them. The firm labelled fake products across categories such as cosmetics, watches, perfumes and footwear as “CF Verified” to gain the trust of the buyer. However, Consumer Affairs Ministry did take action on these issues. The company was also caught undervaluing and wrongly declaring goods to avoid customs duties.
Club Factory also openly violated India’s price control for masks and hand sanitizers, trying to profit from flash sales of over-priced essential products on its platform during the times of a global pandemic.