MRTP Commission prevents LG Electronics from deceiving the public
Our Corporate Bureau
27 October 2005
Chennai: The Monopolies Restrictive Trade Practices (MRTP) Commission has restrained with immediate effect L G Electronics India Private Limited from releasing any false, misleading or deceptive advertisement relating to its Gift Scheme in any form and in any media until further orders.
The director general of investigation and registration, ministry of company affairs had earlier filed applications before the MRTP Commission alleging that L G Electronics has released an advertisement under the caption Mangal Hi Mangal Offer, which was false, misleading and deceptive amounting to an unfair trade practice under the MRTP Act, 1969. In its advertisement, the company had assured gift with every purchase of LG product. However, it did not specify the products and the conditions that are applicable.
The advertisement, inter alia, further states that gifts worth crore of rupees could be won daily. However, there was no mention of any eligibility conditions, issue of coupons or draw of lots. The advertisement also did not mention the conditions under which one may get an assured cash back up to Rs.20,000 as claimed in the advertisement. The commission has held the advertisement, prima facie, deceptive and has, therefore, restrained the respondent company from releasing such advertisement until further orders