Question : MISLEADING ADVERTISEMENT BY COMPANIES

(a) whether misleading advertisements are issued by the companies for attracting customers during the festive season fall within the ambit of unfair trade practices under the Monopolies and Restricted Trade Practices;

(b) if so, the details thereof;

(c) whether the MRTP has taken action against the companies in the matter of issuing misleading advertisements to attract the customers during festive seasons; and

(d) if so, the details of the last three years in this regard till date including names of the companies?

MINISTER OF COMPANY AFFAIRS (SHRI PREM CHAND GUPTA)

(a) & (b) Misleading advertisement issued by the companies for attracting customers during the festival season fall within the ambit of Unfair Trade Practices under section 36A of the Monopolies and Restrictive Trade Practices Act, 1969.

(c) & (d) During the past three years, the Monopolies and Restrictive Trade Practices Commission, instituted three enquiries for issuing misleading advertisements for attracting customers during the festival season. The details of these enquiries are given in the statement annexed.

Annex

STATEMENT REFERRED TO IN ANSWER TO PART (C) AND (D) OF LOK SABHA UN-STARRED QUESTION NO. 595 FOR ANSWER ON 25.11.2005.

Sl. No.	Name of the Company	Brief subject matter	Present status
1.	Spectrum Magazines	The scheme promoted by the	The matter is listed	Limited.	respondent titled `A&M Mega	on 07.12.2005 for	Diwali Offer` offering	further proceedings.	various gifts and prizes. 
2.	M/s. Amba Jewellers.	The advertisement issued by	The Commission issued an	the respondent, on the eve	interim injunction	of Karva Chauth up to Diwali	restraining the respondent	offering gold at wholesale	from continuing with the	rate at retail outlet	same or similar	Rs.5790/- per ten grams	advertisement in any form.	and other prizes.	The matter is listed on	17.01.2006 for further	hearing.
3.	L.G. Electronics India	The scheme promoted by the	The Commission issued an	Private Limited.	respondent company titled	interim injunction	`MANGAL HI MANGAL OFFER	restraining the respondent	THIS DIWALI`.	from republishing/continuing	the said or similar advert-	isements in any form and in	any media with immediate	effect in any form until	further orders. The matter	is listed for further	hearing on 14.12.2005.