The Competition Commission of India (CCI) on Tuesday ordered a detailed probe into the Mrs India Inc, a platform which organises beauty pageants for married women in India, after finding “prima facie” evidences of abuse of dominance by imposing restrictive and exclusive terms on the participants.
In its order, the commission noted that Mrs India Inc disclosed the requirement of signing of terms and conditions (T&C) some days before the finale while the requirement of signing of Winners’ T&C was disclosed just after the finale.
“Such information should have been disclosed to the informant prior to the registration or payment of compulsory package for training and grooming so that she could have taken an informed decision. Prima facie the following terms and conditions in the agreements appear exploitative in nature and may amount to abuse of dominance by the Mrs India Inc,” the order said.
Even though the CCI rejected the allegations of cartelisation and pre-decided winners due to lack of evidence, the regulator raised concern on the five-year “cooling off” period – within the T&C of the agreements – that restricts winners and even participants placed up to the 25th rank from participating in any other beauty pageant as a participant or consultant or judge or mentor or founder or co-founder.
Another issue highlighted by the commission relates to the clause in the T&C that requires participants and winners to mandatorily join hands with a social cause recognised and promoted by the beauty pageant organiser, and the participants will have to contribute as well as raise funds solely to support such social cause as may be assigned by the Mrs India Inc.
“Further, Mrs India Inc imposed the condition on the informant to join hands with a social cause recognised by the Mrs India Inc only comes under tie-in arrangement,” the order said.
The commission was also critical of a specific clause prohibiting participants from signing or accepting any professional assignments or contracts without express written permission of the organiser. The order also noted that despite being granted numerous opportunities, the Mrs India Inc did not furnish comments or provide information sought by the regulator during the preliminary proceedings.
Based on its preliminary assessment, the CCI has directed the Director General to DG to complete the investigation and submit a report within 90 days.
Earlier, a case was filed by Rinima Borah Agarwal, a runner-up in the 2024 Mrs India Inc competition, who alleged that the organiser compelled contestants to sign two agreements that imposed several onerous T&Cs.
As per the complaint, the contestants were required to choose a compulsory “training and grooming” package that cost between between Rs 3.25 lakh and Rs 6.75 lakh. “The information about these packages was neither given to the Informant at the time of registration nor made available on the website of the Mrs India Inc,” the complainant alleged.
