The Monopolies and Restrictive Trade Practices Commission on Wednesday banned consumer electronics major LG Electronics from advertising its 'Mangal Hi Mangal Offer' gift scheme, saying the advertisement was "deceptive".
A bench of the MRTPC, which served a notice to the company, restrained it from releasing any such false, misleading or deceptive advertisement in future.
It restrained the company from releasing the advertisement in any form and in any media until further orders.
The bench directed the company to file its reply within four weeks. The order follows a petition from the Director General of Investigation and Registration in the ministry of company affairs.
In its petition, the DG Investigation and Registration had alleged that the LG advertisement was false, misleading and deceptive, amounting to an unfair trade practice.
The DG said that under the 'Mangal Hi Mangal Offer' gift scheme, LG assured gift with every purchase. However, it did not specify the products and the conditions, which were applicable for eligibility of gifts to the consumers.
The advertisement also promised gifts worth crores of rupees on a daily basis, though making no mention of any eligibility conditions, coupons or draw of lots.
The MRTPC had earlier issued similar orders against two jewellers after finding their advertisements deceptive, amounting to unfair trade practice.
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