The notice which has been issued by the Directorate General of Investigation and Registration (DGIR) under section II(2) of the MRTP Act, 1969, is on the basis of a press report carried by this paper stating that both the companies are indulging in restrictive trade practices to market and distribute their products.

The notice, issued on August 18, has asked the companies to furnish the names and addresses of their present distributors along with a certified true copy of the memorandum and articles of the companies.

The notice has further asked for the complete terms and conditions which the companies apply while supplying visi-coolers to distributors. Both companies will also have to give the total number of visi-coolers purchased and supplied. It was reported that the companies supply the visi-coolers on the condition that the retailers store only their respective brands. Such a practice is construed as restrictive by the commission. The DGIR has also taken up the issue of companies signing exclusive agreements with cinema halls and restaurants. The rationale is to determine if the companies have paid any amount to these retailers for keeping only their brands.

The DGIR wants Coke and Pepsi to furnish details of selling expenses along with complete particulars of parties to whom the two have made payments as part of selling expenses during 1996-97 and 1997-98.

Since Coke and Pepsi have no public holding, the directorate has also asked for certified true copies of their audited annual results for two years. The commission has given both the companies 15 days to furnish this information.