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What is the story about?
The Competition Commission of India (CCI) has ordered an investigation into beauty pageant organiser Mrs India Inc over allegations that it imposed unfair and restrictive contractual conditions on contestants and winners.
The probe follows a complaint filed by Rinima Borah Agarwal, the first runner-up of the 2024 Mrs India competition, who alleged that the organiser enforced several restrictive clauses through agreements signed before and after the event.
Mrs India Inc, a sole proprietorship firm that organises beauty pageants for married women and sends winners to international competitions, is being investigated for alleged anti-competitive agreements and abuse of dominant position.
In its order, the CCI said a preliminary review of agreements submitted by the complainant indicated the presence of "onerous terms". These included restrictions preventing contestants and winners from participating in or associating with any other beauty pageant for five years, including in roles such as judges or mentors.
The regulator also noted that participants were allegedly prohibited from signing or accepting professional assignments or contracts without the organiser's prior written approval. Certain clauses further required participants and winners to support social causes recognised and promoted by the company.
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According to the watchdog, the contractual provisions appeared prima facie exploitative and capable of limiting opportunities available to contestants.
"The Commission is of the opinion that a prima facie case of contravention of the provisions of Sections 3(4)(a), 3(4)(b), 4(2)(a)(i), 4(2)(b)(i) and 4(2)(d) of the Act by the OP (Mrs India Inc) is made out in the present matter," the CCI said in its order.
Sections 3 and 4 of the Competition Act deal with anti-competitive agreements and abuse of dominant position, respectively.
The CCI said it had sought information from Mrs India Inc regarding the allegations and its international pageant tie-ups but did not receive a response despite multiple opportunities.
The regulator has directed its Director General to conduct a detailed investigation and submit a report within 90 days. The CCI clarified that its observations are preliminary and do not represent a final finding on the merits of the case.
Also Read: Weeks after settlement, Blake Lively and Justin Baldoni face new court battle
The probe follows a complaint filed by Rinima Borah Agarwal, the first runner-up of the 2024 Mrs India competition, who alleged that the organiser enforced several restrictive clauses through agreements signed before and after the event.
Mrs India Inc, a sole proprietorship firm that organises beauty pageants for married women and sends winners to international competitions, is being investigated for alleged anti-competitive agreements and abuse of dominant position.
In its order, the CCI said a preliminary review of agreements submitted by the complainant indicated the presence of "onerous terms". These included restrictions preventing contestants and winners from participating in or associating with any other beauty pageant for five years, including in roles such as judges or mentors.
The regulator also noted that participants were allegedly prohibited from signing or accepting professional assignments or contracts without the organiser's prior written approval. Certain clauses further required participants and winners to support social causes recognised and promoted by the company.
Also Read: Don 3 row: Ranveer Singh serves legal notice to film body over non-cooperation action
According to the watchdog, the contractual provisions appeared prima facie exploitative and capable of limiting opportunities available to contestants.
"The Commission is of the opinion that a prima facie case of contravention of the provisions of Sections 3(4)(a), 3(4)(b), 4(2)(a)(i), 4(2)(b)(i) and 4(2)(d) of the Act by the OP (Mrs India Inc) is made out in the present matter," the CCI said in its order.
Sections 3 and 4 of the Competition Act deal with anti-competitive agreements and abuse of dominant position, respectively.
The CCI said it had sought information from Mrs India Inc regarding the allegations and its international pageant tie-ups but did not receive a response despite multiple opportunities.
The regulator has directed its Director General to conduct a detailed investigation and submit a report within 90 days. The CCI clarified that its observations are preliminary and do not represent a final finding on the merits of the case.
Also Read: Weeks after settlement, Blake Lively and Justin Baldoni face new court battle
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