Financial Daily from THE HINDU group of publications
Friday, Jul 05, 2002
Financial Daily from THE HINDU group of publications Friday, Jul 05, 2002 |
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Marketing
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Corporate Disputes Godrej, Whirlpool told to file rejoinder in LG Electronics case Our Bureau
NEW DELHI, July 4 THE Monopolies and Restrictive Trade Practices Commission (MRTPC) has directed Whirlpool and Godrej Appliances to file their rejoinder within a week's time in the controversy over LG Electronics' claims about its refrigerator. The Commission is considering the South Korean major's reply to the show-cause notice (SCN) that had been sent in response to a complaint filed against it by Whirlpool of India and Godrej Appliances. The matter is coming up for hearing on July 15. Refuting the charges before the Commission, LG Electronics India said that the entire case rested upon the fact that there exist specifications laid down by the Bureau of Indian Standards (BIS) that are applicable to the products in question. They claimed that the complainant had absolutely concealed the fact that the specification bearing No.IS:1476 (Part I):2000, which is currently in force and the specification relied upon by the complainant IS:1476 -- 1979, which has since been replaced by the former, cannot be applied to refrigerators cooled by `internal forced air circulation', LG submitted. "The refrigerator models which are subject matter of the complaint are refrigerators cooled by internal forced air circulation (frost-free) and as such the specification laid down by BIS cannot be applied to these refrigerators," the company submitted. LG Electronics also countered the report of the test conducted through an independent agency, Central Power Research Institute (CPRI), Bangalore, that it has overstated its capacity in some of its models. The company said that it had got the models in question tested and measured by the Indian Institute of Technology (IIT) Delhi, which found that the capacity declared by LG as fair and reasonable. As per the two petitions filed by Whirlpool India and Godrej Appliances, LG Electronics was misleading the consumer by over claiming the capacity by 11-14 per cent on its frost-free models where the BIS allows only three per cent variation on the declared capacity.
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