–B Swaminthan

Coimbatore, Dec 12: The South India IT Association has extended it’s support to boycott billing the National Distributors, called upon by the National Federation of IT Associations (FAIITA) from Dec. 15.

S Karthikeyan, president of the SIITA said, “We are supporting the cause and as for as my knowledge every association in South India will be a part it.”

National Forum

He also said that it would be wrong to call it a bundh as the partners will not be shutting the shop, but will only stop billing the National Distributors of the brands, which haven’t come up with a solution to stop the unethical pricing practice.

“Bundh is be not the right term as the federation has given only an advisory only to stop billing the ND’s. The message of holding a bundh, which is being spread on Whatsapp may not be true,” he said reacting to a news published in ChannelTimes. (click here to read)

“Instead of addressing the root cause of the problem (predatory pricing by OLS), in our opinion , OEMs/Brands are trying to further regulate the channels by complicating the process by introducing authorised / unauthorised, online/offline definitions, which are not really going to address the core issue of predatory pricing,” said FAIITA in a communication to the regional associations after a meeting with the brand owners.

Initially, FAIITA has announced that the partners will boycott the billing until Dec. 22, after which a decision will be taken on the future action. This will be based on what the OEMs or Brands do to put a corrective mechanism in place, to check predatory pricing.

“Associations are further advised that OLS will be coming up with predatory pricing sales (deep discount) for GOSF, Christmas and New Year. So they must evaluate and advise their members to get prepared to face the same, so that they don’t incur loss and report to their state presidents on the price parity from each sku of every Brand,” the communication added.

FAIITA is also planning to hold talks with the TDAI on the above issue and request them to support the cause.

Also watch:
Karthikeyan speaking about the FAIITA