Govt mulls alternative set-up for handling misleading ads

NEW DELHI: Worried that a legal bulwark against misleading advertisements may be lacking after the MRTPC is wound up, the government is contemplating an alternative mechanism to address the issue.

As the Competition Commission, which succeeds the Monopolies and Restrictive Trade Practices Act, has no powers to investigate cases of misleading advertisements, the Corporate Affairs Ministry has written to the Ministry of Consumer Affairs to work out a mechanism on this.

At present, the MRTPC has the powers to investigate cases pertaining to misleading advertisements, suo motu or on complaints.

"We have written a letter to the Consumer Affairs Ministry on the issue of misleading advertisements," an MCA official told PTI.

The MRTPC, as per the Competition Act, will be wound up two years after the Competition Commission becomes fully functional.

After deciding whether an advertisement is misleading, the MRTPC refers such cases to a consumer court. But, the CCI does not have the powers to handle misleading advertisements.

As such, this issue will be left untouched if an alternative arrangement does not come up.