Background of the Case:

CCP initiated a suo moto inquiry into the allegations made in the advertisements of Remaine wherein RITS Incorporation claimed that Remaine provided 100 % hair fall treatment within fifteen days of use. RITS Incorporation further claimed in the advertisements that ‘not a single hair’ would fall after its use. The enquiry was completed vide an enquiry report dated 10 January 2011. The enquiry report concluded that RITS failed to provide any substantial evidence in support of its claim and was therefore, prima facie, in violation of Section 10 of the Competition Act, 2010. In light of the findings of the enquiry report, a show cause notice was issued to RITS Incorporation on 12 January, 2011 for prima facie violation of Section 10(1) read with Section 10(2) (b) of the Act.

During its analysis, the Commission relied on the P&G order wherein while discussing the concept of reasonable basis, it was stated, inter alia, that “it is a concept which provides that, the advertiser must have had some recognizable substantiation for the claims made prior to making it an advertisement.”

The Order:

RITS representatives expressed their inclination to amend the said adverts and sought guidance from the Commission such that the adverts comply with Section 10 of the Act. They were directed to remove absolute claims lacking reasonable basis entirely from their packaging as well as their advertisements. RITS submitted three revised proposals, of which one proposal was partially acceptable as it incorporated the directions of the Commission but it still contained absolute claims. After further consultation, RITS rectified the revised proposal in compliance with Section 10. Commission took a lenient approach due to the cooperation extended by RITS and did not impose a penalty but reprimanded the party to ensure more responsible behavior in future with respect to marketing of the product.

Current Status:

The revised advertisement was submitted. Order has been complied with.