Monopolies and Restrictive Trade Practices Commission
Director General (Investigation And ... vs Bajaj Auto Limited on 13 September, 2001
ORDER
C.M. Nayar, Chairman
1. This order will dispose of the application of the Director General (Investigation and Registration) (DG in short) under Section 36-B(c) read with Section 36-A of the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act in brief). The office of the DG has received a complaint dated 26th August, 1996 from Shri Vinod R. Shah, Chairman of Consumer Protection Council, having its office at 501/B, 5th Floor, Shaily Building, Opp. Loha Bhawan B/H, Gujarat High Court, Navrangpur, Ahmedabad. The complainant alleged that the respondent is making false claim of zero maintenance on its motor-cycle "Bajaj 4-S Champion" in the advertisements issued by the respondent on Doordarshan. A copy of the complaint has already been filed along with the application.
2. We have heard the learned Counsels for the parties. The letter dated 26th August, 1996 incorporating the complaint against the respondent reads as follows :
"Ref. CPC/8/96 Dated : 26th August, 1996 Shri A.K. Sharma Director General Office of the Director General of Investigation and Registration (M.R.T.P. Commission) Bikaner House Barracks, Shahjahan Road, New Delhi-110011 Dear Shri Sharma,
I am in receipt of your letter No. P/ MISC/DGIR/96 dated 7th August, 1996, and appreciate the prompt line of action taken by you. We hope that the rapport established by your good self with the consumer organisation continues and we hope that all of us together with your office will succeed in making the consumer movement move effective.
I would also like to draw your attention to an advertisement by Bajaj Auto Ltd. which was telecast on Doordarshan on 15th August, 1996 at 4.15 p.m. in between the feature film "Raj Tilak". The advertisement talks about Bajaj Champion Motor-cycle which gives an impression of zero maintenance, which is nothing but a false claim. It indeed is a misleading advertisement and they must stop such a claim it. Kindly do the needful in the matter.
Thanking you, Yours faithfully, Sd/-
(Vinod R. Shah) Chairman"
2. The impugned advertisement is also placed on record and the operative part of the said advertisement read as follows :
"MAXIMUM MILEAGE "The Bajaj 4-S Champion is India's most fuel efficient motor-cycle at 87 km. pl. and is also the only one that is supported by one year free maintenance of "No Maintenance".
"CHAMPION PERFORMANCE The Bajaj 4-S Champion is India's most fuel efficient motor-cycle at 87 kmpl. And is also the only one that is supported by a one year free maintenance offer ZERO MAINTENANCE".
4. The respondent has filed its reply wherein it has been categorically stated in Sub-paragraph (a) of Paragraph II which is as follows :
"(a) Application is entirely based on the advertisement issued by the respondent on 15th August, 1996 on Doordarshan and the advertisements in various newspapers regarding the maintenance of "Bajaj 4-S Champion" motor-cycle. The application refers only to a part of those advertisements which refer to zero maintenance and lays emphasis on it only. The text of all the advertisements, however, clearly indicates and/or states that the zero maintenance of Bajaj 4-S Champion motorcycle is linked with the one year free maintenance offer, it being the only one that is supported by such free maintenance offer and, therefore, where any advertisement refers to zero maintenance, it in fact when read with the text of the advertisement clearly indicates/denotes that the owner of the said vehicle will not be liable to pay anything towards maintenance during the 1st year from the date of purchase of the vehicle."
5. Further it is submitted in Sub-paragraph (a) of Paragraph-Ill stating the terms and conditions of the scheme which may be referred to as under :
"(a) The answering respondent with a view to develop more awareness about its "Bajaj 4-S Champion" and to promote the sales thereof launched a scheme which offered "one year free maintenance" from the date of purchase of the vehicle. The duration of the said scheme was 1.10.1995 to 30.9.1996 and the scheme was applicable only to 4-S Champion/RTZ/SX Enduro models. The terms and conditions of the scheme were as under :
Terms and Conditions (1) The scheme is applicable only to 4-S Champion/RTZ/SX Enduro purchased between 1.10.1995 and 30.9.1996.
(2) The special benefit under the scheme are valid for one year from the date of purchase of the vehicle.
(3) Customer gets the Scheme benefits at any authorised vehicle dealer or Service Dealer for one year from the date of purchase.
(4) General terms and conditions given in the owner's manual are applicable, particularly under the title 'WARRANTY-SCOPE AND LIMITS'.
(5) (a) Scheme does not cover "Normal wear and tear of Tyres/Tubes and Spark Plug", however normal warranty terms are applicable for these items.
(b) Warranty is not applicable to parts of the vehicle that have been altered/modified/tampered with/misused or involved in an accident. Accessories and the repairs thereof are also excluded.
(c) Warranty is not applicable if 'Owner does not avail the respective Coupon Services within stipulated time/kilometre limits".
(d) Please produce owners manual every time you bring your vehicle for air/services, etc.
(e) Engine oil changes are also provided free of cost.
(f) Parts like bulbs, 'O' rings or normal wear and tear items such as clutch plates, chair sprockets, etc. are absolutely free."
6. The reading of the above clearly establishes that the free maintenance which was carried out for one year guarantee period was only in operation from 1.10.1995 to 30.9.1996. For a particular period thereafter, this advertisement has not been repeated. In view of the above facts, we find no ground to continue with the present proceedings and the same are disposed of. The Notice of Enquiry is discharged with no order as to costs.