TVS Motors Company has challenged Bajaj Auto in the Madaras High Court for ‘disparaging’ its products through an ad campaign Tamil Nadu. HC has issued a two-week interim injunction on the ads. Mileage of the Bajaj CT100 and TVS XL100 were compared in these ads, and TVS claims the figures to be false.
The court in the interim injunction order says, “the respondents from continuing the ad which disparages the applicant’s product TVS XL100 by comparing the fuel efficiency of the applicant’s product with the respondent’s product for a period of two weeks”.
As per TOI, around nine dealer-level ads were circulated in Tamil Nadu, and TVS filed the case around 9 days ago. The decision of the court is based on the fact that Bajaj Auto pointed out the specific demerit in TVS’s product. The court also said that Bajaj promoting its own product is not questionable and “permissible”, but disparaging statement of TVS would surely be actionable. Having said that, the final decision can only be pronounced only after TVS files a detailed counter.
The problem in the series of ads is the mileage figure claims, as they claim the fuel-efficiency of TVS’s product be less than 50 percent of the Bajaj’s. The court also said that it is permissible to show a comparison between the two products, but it should not have “negative overtone” and it cannot belittle the rival. The court order further added that the ads should have reasonable restrictions.
Source – TOI