The Competition Commission of India took note of allegations that participants were informed of several significant contractual obligations only after making substantial payments, potentially depriving them of an informed choice.
The Mrs India Inc, which holds beauty pageants for married women, will face an inquiry by the Competition Commission of India for abusing its dominant position by putting onerous terms and conditions on participants, according to an order released by the antitrust watchdog on Tuesday.
The case is based on a complaint filed by a participant and first runner-up of the 2024 Mrs India competition, who has alleged that the organiser imposed unfair contractual conditions, extracted substantial payments, and restricted winners from participating in competing pageants or professional activities for up to five years.
Key Points
- CCI has ordered an investigation into Mrs India Inc over alleged abuse of market dominance.
- A contestant alleged unfair contracts, heavy payments and restrictive conditions imposed on participants.
- Winners were allegedly barred from joining competing pageants or related professional roles for five years.
- CCI found prima facie evidence of exploitative and discriminatory contractual provisions affecting contestants.
CCI Orders Investigation
In its order, the CCI noted that Mrs India Inc, a sole proprietorship firm, imposed unconscionable, exploitative and discriminatory terms and conditions upon the participants.
For instance, the agreement prohibits the participants and the winners from participating in any other beauty pageant as a participant/consultant/judge/mentor/founder/cofounder for the said period of five years.
In its order, the Commission highlighted that the terms and conditions arbitrarily stipulate that all appearances by the winner must receive prior approval from the opposing party (Mrs India Inc) which contravenes Section 4(2)(d) of the Act.
'...these clauses appear to make conclusion of contracts subject to acceptance of supplementary obligations, such as contribution to and involvement in specific social causes that have no connection with the subject of the contract,' the CCI order said.
Dominant Market Position
In absence of any market share data available, the CCI took the view that based on international franchise holdings, national reach, media and public visibility, longevity and frequency of editions Mrs India appeared to be a dominant player in the delineated relevant market.
CCI noted that the pageant organiser held exclusive licence to send its winners to participate as India's representative at Mrs Globe, Ms Galaxy, Mrs International Summit and Mrs International World.
The antitrust regulator also took note of allegations that participants were informed of several significant contractual obligations only after making substantial payments, potentially depriving them of an informed choice.
The Commission has directed the director general to conduct a detailed investigation and submit a report within 90 days.
The regulator clarified that the order represents only a prima facie assessment and does not constitute a final finding on the merits of the allegations.
Feature Presentation: Ashish Narsale/Rediff
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