Notices to Parle and ITC
Online, November 11, 2010 (Newswire.com) - National Consumer Disputes Redressal Commission has issued notices to two MNCs, namely, Parle Biscuits Pvt Ltd and ITC Limited for allegedly making false claims and misleading consumers pertaining to their products 'Parle Musst Stix' and 'Bingo Tedhe Medhe Masala Tadka' respectively. The notice has been issued in response to a case filed by a Delhi based lawyer Ms. Jahanvi Worah.
Parle in its TV ads, in the year 2009, had claimed "jo paisa hum inki advertising par kharch karne vale the, humne socha kyun na woh aapko zyada snack dene main laga diya jaaye" (the money which we were going to spend on advertising we thought we would instead spend on giving you more snack quantity) and "try kijiye aur jaaniye same price mein dusron ke mukabeley main hamare paas hai 50% zyada quantity" (try [our product] and know that in the same price we offer 50% more quantity than those of any of our competitors). The wrapper of each packet of the Product also contained an inscription that it contained "50% extra". Documents also revealed that the company made a profit of Rs. 9274.22 Lakhs during that financial year.
During the same time, advertisements released by ITC Limited also claimed that they were offering 50% on their product 'Bingo Tedhe Medhe Masala Tadka' and the wrappers also contained an inscription that it contained "50% extra", so as to attract the consumers and to give a fillip to the sale of Bingo Tedhe Mede Masala Tadka. The company had a total advertising budget of Rs. 502.30 crores during the financial year 2008-2009.
Problem arose, when Ms. Jahanvi Worah, a Delhi-based lawyer, purchased the products. She, somehow, got suspicious and wanted to check on the claims made by the said companies.
She went to the market again and bought similar products from various competing companies including Kurkure Masala Manch, Yellow Diamond etc. She was shocked to find out that Bingo Tedhe Medhe Masala Tadka did not even exist before the launch of the promotional scheme, meaning thereby that the company launched a new variant with the claim of "50% extra" quantity.
The inquiries revealed that both the companies were misleading the large base of their consumers spread across the length and breadth of the country. Ms. Worah produced before the hon'ble Commission, the original bills and wrappers of both the products along with the bills and wrappers of the competing products to prove her point. The hon'ble Commission, while accepting her petition, has now issued notices to both the companies to explain their positions. ***
Ms. Jahanvi Worah can be contacted at :
C/o Jahanvi Worah & Associates
Q-19B, Jangpura Extension
New Delhi - 110 014
Phone : +91 11 24323410
Mobile : +91 98101 83379
Mail : jahanviworah.associates at gmail dot com