Competition Act does not cover advertising issues, CCI clarifies

The Competition Commission of India (CCI) has dismissed a case against Woodman Electronics India Private Limited, ruling that allegations of misleading advertising and non-disclosure of Country of Origin (COO) fall outside the scope of the Competition Act, 2002.

In a decision presided over by Chairperson Ravneet Kaur and members Anil Agrawal, Shweta Kakkad, and Deepak Anurag, the Commission addressed an anonymous complaint filed under Section 19(1)(a) of the Competition Act. The complaint alleged that Woodman Electronics was engaging in deceptive practices by marketing Chinese-manufactured Android head units as 'India Ka Apna Brand' without disclosing their country of origin.

The Commission found no evidence to support Woodman Electronics' claims of market dominance in the car audio sector, which includes major global competitors such as Sony, Blaupunkt, and Pioneer. In its defence, Woodman Electronics maintained its position as a minor player in the market, competing against established international brands like Panasonic and JBL.

The CCI's ruling clarified that such consumer-related issues, including misleading advertisements and COO disclosure, fall under the jurisdiction of the Consumer Protection Act, 2019, rather than the Competition Act. The Commission granted three years of confidentiality to protect the informant's identity and concluded the case under Section 26(2) of the Competition Act.

This decision establishes a clear distinction between competition law violations and consumer protection issues, directing future complaints of misleading advertising to appropriate legal channels under consumer protection legislation.

Read the full decision here.