Published
Jun 29, 2022
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NAA finds L'Oreal India guilty of GST profiteering, orders price reduction

Published
Jun 29, 2022

The National Anti-Profiteering Authority has found cosmetics and personal care brand L’Oreal guilty of profiteering to the tune of Rs 186.39 crore after failing to pass on goods and services tax cut benefits to the consumer.

L'Oreal has been found guilty of GST profiteering L'Oreal Paris - Facebook


The Directorate General of Anti Profiteering investigation found that L’Oreal India Private Limited did not alter its product prices adequately to reflect the GST cut from 28% to 18% which came into effect on November 15, 2017, ET Bureau reported. This GST cut affected L’Oreal goods including some cosmetics goods, hair products such as hair colour and conditioner, and some skincare including face wash.

L’Oreal claimed that it had passed on the GST cut benefit to consumers but its claim was rejected by the NAA. “The authority directs the Respondent to commensurately reduce the prices of the impacted goods,” said the NAA in its order to L’Oreal, the Press Trust of India reported. 

Of the amount deemed to have been profiteered, the NAA ordered the business to pay 50% of the total, or Rs 93.19 crore, into the Central Consumer Welfare Fund. L’Oreal must also pay the remaining money to state Consumer Welfare Funds. 

The NAA had ordered the DGAP to investigate L’Oreal for GST profiteering from November 15, 2017 to December 31, 2018. The DGAP also in investigated whether the benefits were passed on the the consumer after December, 2018. 

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