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Showing contexts for: asci code in Havells India Ltd & Anr vs Amritanshu Khaitan & Ors on 17 March, 2015Matching Fragments
6. Mr. Lall submitted that all attributes connected to the value of the Bulb had to be fairly disclosed and not presented in a tricky manner or misleading way. He emphasised that the impugned advertisement would lead a reasonable person in the position of a buyer to a wrong conclusion. In support of his contention, he relied upon the Advertising Standards Council of India Code (for short "ASCI Code"). The relevant portion of the ASCI Code is reproduced hereinbelow:-
"DECLARATION OF FUNDAMENTAL PRINCIPLES IV. To ensure that advertisements observe fairness in competition so that the consumer‟s need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business are both served.
COURT‟S REASONING WHAT IS ADVERTISING?
21. Having heard learned counsel for the parties, this Court is of the opinion that it is first essential to define advertising. Article 2(1) of the Advertising Directive of EEC defines Advertising to mean, "the making of a representation in any form in connection with a trade, business, craft or profession in order to promote the supply of goods or services." ASCI Code defines advertising as a paid-for communication, addressed to the Public or a section of it, the purpose of which is to influence the opinions or behaviour of those to whom it is addressed. Consequently, any communication which in the normal course would be recognised as advertising by the general public would be included in this definition even if it is carried free-of-charge for any reason.
DEFINITION OF COMPARATIVE ADVERTISING
25. Though comparative advertising has not been defined in the ASCI Code, yet Article 2(2a) of the Advertising Directive of EEC defines comparative advertising as "any advertising which explicitly or by implication identifies a competitor or goods or services offered by a competitor."
CS(OS) 107/2015 Page 12 of 25COMPARATIVE ADVERTISING IS LEGAL AND PERMISSIBLE UPON CERTAIN CONDITIONS
26. In the opinion of this Court, Comparative advertising is legal and permissible as it is in the interest of vigorous competition and public enlightenment. In fact, Chapter IV of the ASCI Code, relied upon by the plaintiffs, itself specifically deals with Comparative Advertising. The relevant portion of the ASCI Code reads as under:-
COMPETITORS CAN CERTAINLY COMPARE BUT CANNOT MISLEAD
38. In the opinion of this Court, the purpose of the provisions in the Act, 1999 and the ASCI Code which lists the conditions under which comparative advertising is permitted is to stimulate competition between suppliers of goods and services to the consumer‟s advantage, by allowing competitors to highlight objectively the merits of the various comparative products while, at the same time, prohibiting practices which may distort competition, be detrimental to competitors and have an adverse effect on consumer choice.