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NEW DELHI, April 2

COMPETITIVE tactics aside, it is the interest of the consumer which has been upheld. The Monopolies & Restrictive Trade Practices Commission (MRTPC), in a case regarding capacity of refrigerators, has ordered enquiries against all three players, Whirlpool of India Ltd, LG Electronics India Ltd and Godrej Appliances Ltd, even while directing them to specify the nature of capacity of their products.

"We find that there is no uniformity in representation regarding the capacity of the refrigerators in question. Electrolux Kelivinator Ltd (the party not before us), has specified the capacity of its refrigerators as `gross'. The least the three manufacturers i.e. Whirlpool, Godrej and LG can do, is to specify the nature of the capacity whether `gross' or `net' in their representations made either through print media or any other media," the Commission said.

It further added, "We would, therefore, direct that Whirlpool, Godrej and LG would, henceforth, specify the nature of the capacity whether gross or net of the impugned refrigerators in their representations made through print media or other media till the disposal of the enquiries. To this limited extend, ad interim injunctions are issued to all the three parties".

The Commission made these observations in the course of considering applications filed by Whirlpool and Godrej alleging LG of overstating its product capacity. A counter application was filed by LG contending that Whirlpool was making false representations in its product literature that its products conform to the Bureau of Indian Standards (BIS) norms when that is not the case in frost-free refrigerators.

"We have been given to understand that some efforts are going on regarding the formulation of uniform standards which may come up in future. Till then we would hold that enquiries need to be initiated against all parties," the Commission said.

Generally in the perception of a common consumer, capacity is understood to be in terms of storage capacity and not otherwise, the Commission said. "Whether the same is to be measured in terms of BIS norms, international standards or any other norm is a question to be addressed. Liberty given to the parties to frame their own standards for measuring the volume and capacity of its own refrigerators may harm the consumer whose interest needs to be protected. As at the time of the hearing no consensus could be arrived between the parties, enquiries need to be instituted for determination and formulation of fair standards for measuring the capacity of frost-free refrigerators in question," the Commission said.

Considering the facts of the case, it noted "No prima facie case has been made against each other by the parties for issue of injunctions from manufacturing or selling the refrigerators in question of the other party. Balance of convenience also does not tilt to either side. At this stage, there is uncertainty about each other's claim. The issue of injunction while protecting the rights of one party may adversely affect that of another. Issue of injunction at this stage restraining LG from manufacturing and selling refrigerators in question may cause irreparable loss which cannot be made good by damages or compensations," it said.

"Whirlpool is, however, directed not to represent either through any visual or print media or other media that its products are as per BIS Standards," the Commission said.

Reacting to the Commission's order, Mr Ashok Bhasin, Vice-President Marketing, Whirlpool, said, "We have throughout laid emphasis on the fact that it was the well being of the consumer that matters. While we have been stating the net usable capacity, LG has been overstating the capacity by mentioning gross, thus misleading the consumer."

Commenting on the judgement, Mr Ganesh Mahalingam, Head - Sales and Marketing, LG Electronics India Pvt Ltd, said, ``LG is contemplating legal action against Whirlpool and Godrej for filing a frivolous case and defaming our brand name.''

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