AHMEDABAD May 21: THE Monopolies And Restrictive Trade Practices Commission (MRTPC) has directed Hindustan Lever Ltd (HLL) to withdraw its 1 kg iodised salt packing with a maximum retail price Rs 6 beig marketed under the brand name `Kissan Annapurna'.The MRTPC held that the company should withdraw all the stocks within a week and suspend the scheme of gifting a Wheel soap with purchase of two 1 kg packs of salt.

National Council For Civil Liberties, Ahmedabad (NCCL) had filed a complaint with the commission that HLL had raised the price of its 1 kg packet of salt by Re 0.50 when they introduced the free soap scheme. Thus the company has shifted the burden of expenses on the shoulders of the consumers in the name of Free Gift Scheme, thereby indulging in unfair trade practice as per Section 36A of the MRTP Act.

The chairman of the commission, Justice AN Diwecha in his order had come to the conclusion that balance of convenience prima facie appears to be more in favour of public interest with which NCCL appears to be concerned.He further observed that the company should not shift the burden of the gift on the consumers. The commission also passed an ex-parte injunction that the company cannot sell its iodised salt product at a price exceeding Rs 5.50 per packet of one kg.

The company has been further directed to withdraw all the packets bearing maximum rate of Rs 6 from the market within seven days from May 15, 1997 and to suspend the scheme of giving a soap free with immediate effect. Advocate Pithawala presented the case on behalf of the council.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.