The Competition Commission of India (CCI) has ordered a detailed investigation into Mrs India Inc over allegations that it imposed unfair, restrictive and exploitative contractual terms on pageant participants. According to the latest order released by the antitrust watchdog on Tuesday, the case stems from a complaint filed by a participant and first runner-up of the 2024 Mrs India competition, who alleged that the organiser imposed unconscionable, exploitative and discriminatory terms and conditions on participants. The CCI noted that Mrs India Inc, a sole proprietorship firm, imposed unconscionable, exploitative and discriminatory terms and conditions on participants, with the commission directing the Director General to conduct a detailed investigation and submit a report within 90 days.
The CCI highlighted that Mrs India Inc's terms and conditions arbitrarily stipulate that all appearances by winners must receive prior approval from the organiser, which contravenes Section 4(2)(d) of the Act. As reported by Business Standard, the agreement prohibits participants and winners from participating in any other beauty pageant as a participant, consultant, judge, mentor, founder or co-founder for a period of five years. The commission noted that 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 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.
In the absence of any market-share data, 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. According to Business Standard, the CCI noted that the pageant organiser held the exclusive licence to send its winners to participate as India's representative at Mrs Globe, Ms Galaxy, Mrs International Summit and Mrs International World. This assessment forms the basis for the CCI's determination that the case warrants further investigation under competition law.
The commission clarified that the order represents only a prima facie assessment and does not constitute a final finding on the merits of the allegations. As per Business Standard, the CCI's findings emphasize the limitations of competition law on matters primarily involving state transport regulations, while highlighting the importance of fair contractual practices in dominant market positions. This regulatory approach demonstrates the CCI's commitment to ensuring competitive practices across different industry segments, from mobility platforms to beauty pageant organizers.
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