CCI orders probe into Mrs India Inc for
alleged anti-competitive practices
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 & conditions
(T&C) 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.
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
T&C 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.
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.
www.business-standard.com,
dt. 03-06-2026