New Delhi, Fair trade regulator CCI on Tuesday ordered an investigation into alleged anti-competitive practices by beauty pageant organiser Mrs India Inc, as certain clauses in the contracts with contestants and winners appeared prima facie ‘unfair and restrictive’.
The order came after the first runner-up of a beauty pageant alleged that the organiser imposed several restrictive conditions through agreements executed before and after the event.
Mrs India Inc, a sole proprietorship firm, organises beauty pageants for married women. The complaint was filed by a participant and the first runner-up of the 2024 Mrs India competition.
According to the complainant, contestants were required to sign agreements that allegedly restricted them from participating in or associating with other beauty pageants for five years.
The agreements also contained provisions requiring prior approval from the organiser for professional engagements and other activities, the order said.
After examining the matter, the Competition Commission of India (CCI) noted that certain contractual clauses appeared to be exploitative and capable of restricting opportunities available to participants.
The competition watchdog observed that winners were allegedly barred from entering into contracts without prior approval, restricted from participating in other pageants for five years, and required to undertake specific activities and appearances subject to the organiser’s consent.
“The Commission is of the opinion that a prima facie case of contravention of the provisions of Sections 3(4)(a), 3(4)(b), 4(2)(a)(i), 4(2)(b)(i) and 4(2)(d) of the Act by the OP (Mrs India Inc) is made out in the present matter,” CCI said in the order.
Sections 3 and 4 pertain to anti-competitive agreements and abuse of dominant position, respectively.
Accordingly, CCI ordered its Director General (DG) to launch an investigation into the matter and submit the investigation report within a period of 90 days.
The regulator clarified that nothing stated in this order will be tantamount to a final expression of opinion on the merits of the case, and the DG shall conduct the investigation without being swayed in any manner whatsoever by the observations made herein.
