Another Malpractice – Coffee Day this time!

Cofee Day Bill

Coffee Day's malpractice of rounding off to the nearest higher rupee.

It is not an unusual practice for a chain retailer to round off the final purchase amount to do away with handling coins.  All retailers that I have seen so far round to the nearest rupee. Sometimes the retailer makes out, sometimes the consumer makes out and that is quite tolerable. Though technically speaking it would be illegal to round to the nearest higher rupee, because that will mean that the retailer has violated the MRP boundary.

And it is similarly not very uncommon to have your neighborhood non-chain retailer to let go of change always, regardless of whether the its above 50paise or below.

But recently, we found an exception to traditional norms and running an illegal practice. This is India’s largest coffee chain – Coffee Day. Check the picture (badly scanned bill) from one of their outlets in Bangalore. The total amount (pre-rounding off), you will notice was Rs 299.22. However the final amount on the bill is Rs 300.  If rounding off were to happen, you would expect the amount to get rounded off to Rs 299. This sounds outright a malpractice and something illegal to me! What do you think?

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3 thoughts on “Another Malpractice – Coffee Day this time!

  1. Dear Sir,
    Appreciate all your efforts in getting the bill scanned and fed on this site.
    Retail is going through such a bad patch and one of the successful retail chains in the coffee industry – Cafe coffee Day! must get the edge – round it in their favor please … let Indian companies climb the ladder. Let live Indian companies!!! ( The customers who come to CCD are well off and wont mind it, I suppose)
    Regards,
    Sunjai
    Coffee Planter

    Like

  2. Hi,

    I really feel it is a kind of fraud, as you have rightly mentioned. It has to be rounded off to the nearest integer, in this case it is 299.
    Now whether this is due to the technical issues, or the intentional one is to be questioned.

    It is not the matter of who is paying the bill, whether he is well off for that or not. It is the matter of honesty and integrity of the company. So i would feel it would really matter. Next time i visit CCD, would make it a point to scan my bill throughly.

    Nayan Dharamshi
    II MBA-Marketing
    Christ Institute of Mgmt.

    http://www.nayan-dharamshi.blogspot.com

    Like

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