Airtel, Star TV, to pay Rs10 million for unfair trade

In a decision highlighting the business interests behind television contests that are conducted via short message service (SMS), the National Consumer Disputes Redressal Commission (NCDRC), the apex body for consumer disputes, has recently held Star Plus TV and Bharti Airtel (India’s largest mobile operator) guilty of adopting unfair trade practices, in Society of Catalysts v Star Plus TV and Bharti Airtel Ltd.

As a voluntary consumer organization, the society filed a complaint against the alleged unfair trade practices adopted by Star Plus and Bharti Airtel, accusing these companies of misleading viewers about a contest – Har Seat Hot Seat (HSHS) – which had been aired directly following Kaun Banega Crorepati (KBC), the Indian version of the hit show, Who Wants To Be A Millionaire.

In the HSHS contest, aired at the end of each episode of KBC, a question was shown and viewers were asked to send their answers via text messages or phone calls on the Airtel network. A prize of Rs200,000 (US$4,000) was given to one person (selected by a lucky draw) who provided the correct answer after each show. Airtel charged Rs2.40 per text message, higher than the normal charge of Rs1.

The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in, lbhasin@vsnl.com or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.