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MRTPC slaps ban on LG advertisement

27-October-2005
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MRTPC slaps ban on LG advertisement

The Monopolies and Restrictive Trade Practices Commission (MRTPC) on Wednesday restrained Korean electronic major LG Electronics India Pvt Ltd from releasing any false, misleading or deceptive advertisement relating to its gift scheme in any form and in any Indian media until further orders, according to an official release.

The Director-General of Investigation and Registration, under the Ministry of Company Affairs, had earlier filed applications before the MRTP Commission alleging that LG 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, which were applicable for eligibility of gifts to the customers.

The advertisement also 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.

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