MRTP Commission restrains LG Electronics from releasing misleading advertisement

for Ministry of Company Affairs | Date - 26-10-2005


MRTP Commission has restrained with immediate effect M/s. 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 M/s. L.G. Electronics India Private Limited 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 which were applicable for eligibility of gifts to the customers. The advertisement, inter alia, further states that gifts worth crores of rupees to 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.

Earlier, on 21.10.2005, the Commission had issued injunction orders against M/s. Amba Jewellers and M/s. Rajesh Gems and Jewels Private Limited, New Delhi from releasing false and deceptive advertisements offering the sale of gold jewellery @ Rs.5790/- and Rs.5750/- per 10 gms. as against the prevailing rate of Rs.6990/- per 10 gms. The Commission held that the advertisements released by the jewelers were, prima facie, deceptive amounting to unfair trade practice since and had been inserted to attract the consumers for making purchases of gold during festive season.

BY/AN
(Release ID :12939)

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