Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Unfair Trade Practice Consumer Protection Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Consumer Protection Act, 1986 (68 of 1986) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Consumer Protection Act, 1986 – s.2(1)(r)(3)(a) – Unfair trade practice – A television channel-Star India (P) Ltd used to broadcast the programme ‘KBC’ and the programme was sponsored by a cellular mobile service provider-Airtel – During the telecast of this programme, a contest ‘HSHS’ contest was conducted, in which the viewers of programme were invited to participate and viewers who wished to participate were required to send in the correct answer, inter alia through SMS services, offered by the cellular mobile service providers to a specified number – It was alleged that the appellants had created a false impression in viewers’ minds that participation in ‘HSHS’ contest was free of cost, whereas the cost of organizing the contest as well the prize money was reimbursed from the increased rate of SMS charges and profits were shared by the cellular mobile service provider with television channel – Hence, they were committing ‘unfair trade practice’ u/s. 2(1)(r)(3)(a) of Act, 1986 – The National Commission held that the prize money for the ‘HSHS’ contest was fully or partly covered by the revenue earned from increased SMS charges, the appellants had committed an unfair trade practice u/s. 2(1)(r)(3)(a) of the Act, 1986 – On appeal, held: On perusal of the services-cum-sponsorship agreement, it reveals that cellular mobile service provider had the sole and exclusive right to charge fees or charges towards the services rendered by it to facilitate participation in the ‘HSHS’ contest, through SMS, telecalling etc., and thus, television channel had no role in determining the same – Further, cellular mobile service provider was liable to pay a monthly lump sum as fees to television channel, irrespective of whether such amount was realized from its subscribers or not – There was no provision in the agreement for the revenue- sharing between the parties or requiring the cellular mobile service provider to finance any part of the prize money paid by television channel, towards the ‘HSHS’ contest – Thus, it is evident that television channel was liable to pay the prize money irrespective of the profits earned by cellular mobile service provider – There is no basis to conclude that the prize money for the HSHS contest was paid directly out of the SMS revenue earned by cellular mobile service provider or that parties had colluded to increase the SMS rates so as to finance the prize money and share the SMS revenue – Thus, finding of the National Commission of as ‘unfair trade practice’ set aside |
Judge | Hon'ble Mr. Justice Mohan M. Shantanagoudar |
Neutral Citation | 2020 INSC 81 |
Petitioner | Star India (p) Ltd. |
Respondent | Society Of Catalysts & Anr. |
SCR | [2020] 2 S.C.R. 1188 |
Judgement Date | 2020-01-23 |
Case Number | 6597 |
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