LG accuses BPL of tarnishing its image

LG accuses BPL of tarnishing its image
Sanjay Sardana

JAN 15: LG Electronics has charged arch rival BPL of attempts to tarnish its image by circulating copies of hoax e-mails, whose origin was unknown, containing defamatory information against its products.

LG Electronics has also accused BPL of tarnishing its image and brand equity through circulation of pamphlets of damaging nature to its customers. In fact, investigations commissioned by LG revealed that some employees of Godrej GE Appliances had also forwarded the damaging e-mails. LG took up the matter with Godrej GE which assured the company that none of its employees would do so in the future.

LG filed a first information report (FIR) against BPL at Lucknow on the basis of a letter written by BPL's Varanasi branch head Abhik Sinha Ray to BPL's dealers and distributors in October 2000.

In reply to a questionnaire sent by fax for its reaction, BPL's head of corporate legal NN Ranganath stated, "We categorically state that BPL or the management have had no intention of publishing material that is defamatory of competitor's brand or products or about the quality of goods. There are instances of our company's letterhead being misused and we have initiated appropriate action against the offenders."

The Indian Express then faxed to Ranganath a copy of BPL's Varanasi branch head's letter to its distributors in which he enclosed a copy of an e-mail which stated that LG televisions cause cancer. In his second faxed reply, Ranganath stated, "We are causing an investigation to be conducted into the matter immediately."

LG first came across some defamatory matter about it being circulated on the internet through anonymous e-mails. These mails made allegations that its colour TVs emit carcinogenic radiation harmful to the human body.

The content of e-mail alleged that LG-manufactured TV sets emit gamma radiation with the potential to cause retinal cancer and skin cancer. It went on to say that pregnant women were also identified as a group susceptible to the radiation causing co-genital defents to the eyes of the children.

LG has alleged that these e-mail messages were circulated by BPL to its dealers and customers to misguide them. Concerned customers even approached the customer service department of LG Electronics to clarify their doubts.

LG Electronics then appointed international management consultants Ernst & Young to reverse track the sender of these e-mails.

Ernst & Young conducted a preliminary investigation including a forensic study to determine whether the identity of the originator of this e-mail can be discovered. It then launched a full-scale investigation, which involved scrutiny of e-mail transcripts and header information and surveillance of e-mail systems and analysis of logs at the internet service provider level.

The material circulated through e-mails attributed these allegations to comments made by an individual by the name of Dr Ernest Gopher in his capacity of chairman of International Radiation Research Centre in the US.

Ernst & Young in its report has said that the charges made by the so-called institute and Gopher, both of whom do not exist, are baseless.

The e-mail included a sentence urging the recipients to forward it to as many people as possible. Ernst & Young, in its report, has said that hoax e-mails worldwide have displayed similar features.