Consumer Issues
Chinese government slaps P&G with a fine of nearly $1million over misleading commercial
It is alleged that the advertisement used photo-editing software to overstate the benefits of using the toothpaste
 
On 10 March 2015, Chinese authorities imposed a fine of a whopping $958,000 (Rmb6m) on Procter & Gamble for misleading advertising of its toothpaste brand Crest. It is alleged that the advertisement used photo-editing software to overstate the benefits of using the toothpaste. It features a Taiwanese celebrity, and according to The Shanghai Municipal Administration of Industry and Commerce, the images were digitally altered to make her teeth appear whiter. The Chinese media has reported that this is the highest fine ever charged on record in such a case. 
 
In response, Crest China stated that the commercial had already been taken off-air since the middle of last year. Crest responded on its official Chinese microblog. It also added that the "one-day whitening" referred to in the advertisement involves both the using the toothpaste and employing the correct technique in brushing one's teeth. Moreover, all of its products went through complete testing and careful legal compliance before entering the Chinese market, said Crest. 
 
This fine is the latest in the row of instances, where foreign companies have faced severe scrutiny under the Chinese government for various issues, including misleading consumers. Last month, the Chinese regulators charged Qualcom Inc. with a fine of $975 million for violating China's anti-monopoly law. In 2014, Johnson & Johnson, Bausch & Lomb Inc and other eye-care companies were fined more than $3.04 million for fixing prices in China's eye glass and contact lens market. In 2013, Apple Inc. was forced to pay up US$118,000 to compensate three Chinese writers for copyright infringement when it sold their books on the Apple App Store without first seeking their permission.
 
Crest is currently leading China's toothpaste market, and its key competitors are Colgate-Palmolive Co and local brands Darlie and Yunnan Baiyao Group Co Ltd. According to Gao Jianfeng, consumer analyst with Shanghai-based Bogo Consultants, the fine may not necessarily hamper Crest's position in the Chinese market. “I think the impact on Crest’s market share will be very limited,” he said, also stating that there was nothing to suggest that the toothpaste was harmful to users in any way. 

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India TV audio recording alleges Kejriwal of horse-trading
The audio recording released by India TV revealed that Kejriwal had allegedly indulged in horse-trading of six Congress MLAs, before the dissolution of the Delhi Assembly in 2014
 
In yet another setback to Arvind Kejriwal and Aam Admi Party (AAP), India TV released an audio tape recording between former MLA Rajesh Garg and the Delhi chief minister. The recording reportedly revealed that Kejriwal had allegedly indulged in horse-trading of six Congress MLAs, before the dissolution of the Delhi Assembly in 2014. 
 
The horse-trading was aimed at gaining full majority on the floor of the House, which would have enabled the party to form government in Delhi, Garg claimed in the recording.

 
 
Referring to the audio tape released by India TV. Anjali Damania, one of its prominent leader from Maharashtra said she decided to quit AAP. In a message on Twitter, Anjali Damania, said, "I quit.. I have not come into AAP for this nonsense. I believed him.. I backed Arvind (Kejriwal) for principles not Horse-trading."
 
Damania said, "AAP is not a political party. It was a ray of hope for this country. Thousands of vols slogged for it. Just no one can play with the siddhant (principles)".
 
 
The AAP leader also demanded an inquiry and apology from party leaders Kejriwal, Prashant Bhushan and Yogendra Yadav for their conduct over the past few days.
 
Interestingly just few days ago, Damania has backed Kejriwal while the tussle was going on between him and Bhushan and Yadav. Here are some of her tweets from last week…
 

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Economy & Nation Exclusive
Neville Tuli, Osian's Connoisseurs declared as defaulters by IDBI Bank
In a newspaper advertisement, IDBI Bank said Tuli and Osian’s Connoisseurs together owe it Rs59.20 crore as on 1st March, and the Bank holds second charge on the offices of the company
 
IDBI Bank, through an advertisement in a newspaper has declared Neville Tuli, promoter and personal guarantor of Osian's Connoisseurs of Art Pvt Ltd, and the company, a defaulter. The Bank says that it holds second charge of the office premises of the company situated in Nariman Bhawan in Mumbai.
 
The notice, which includes a photograph of Tuli says, "It is hereby notified to the public at large that the above mentioned borrower failed and neglected to pay the instalments of principal, interest and other monies to IDBI Bank with respect to the financial assistance granted to the borrower. The borrowers are required to pay the outstanding sum or Rs59.20 crore as on 1 March 2015 together with interest thereon till the date of payment in terms of various loan documents executed by them in favour of IDBI Bank."
 
The Bank also cautioned people against dealing with the property as huge dues are recoverable from Tuli and his company.
 
The notice is issued by the Bank's NPA Management Group.
 
Earlier in April 2013, market regulator Securities and Exchange Board of India (SEBI) had asked Osian’s-Connoisseurs, which managed Osian's Art Fund, to wind up its existing collective investment scheme (CIS) and refund the money collected from investors. SEBI also referred the case to the state government and the police for filing a civil or criminal case against Osian's and its promoters, directors and persons in-charge of its CIS. In addition, SEBI had also requested the Ministry of Corporate Affairs (MCA) to initiate proceedings to wind up the Art Fund.
 
Osian's raised Rs102.40 crore from 656 unit holders across 39 cities, most of them high net-worth individuals (HNIs). The scheme used to declare NAVs showing 30% returns, but when it was time for redemption, the money was not forthcoming. The scheme was wound up on 10 July 2009.
 
At present, the case is pending before the Securities Appellate Tribunal (SAT).
 
Meanwhile, in January 2015, Tuli, the chairman of Osian's group launched Osianama - India's Arts, Auto Cine & Culture Centre at the iconic art-deco Liberty Cinema in Mumbai. Osianama also launched its Vintage and Classic Automotive Club, which it claims is a unique initiative to bring the world of automotive 'cultural treasures' to both connoisseurs and students in the form of events, exhibitions, discussions, master classes and seminars.  
 
You may want to read...
 
 
 
 

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COMMENTS

Mahesh S Bhatt

2 years ago

Mamu banaya.

Japan had oldest way to defraud in mid 80's by under/over valuing arts & striping accoutnants/governments.

God also cannot bless because underlying fact is greed/cheat instinct legally.

Mahesh

u k saluja

2 years ago

It would be appreciated if you could kindly publish an article once again about promoters of companies like Micro Technologies India Ltd., Mumbai(Dr.P.Sekhar and Mr.Aditya Sekhar, Chairman and CMD respectively) and Mr.Pankaj Saraiya, MD of Avon Corpn.Ltd., Mumbai who have failed to pay back money to theirmatured FD holders and both the companies have not complied with directives/orders issued by CLB, Mumbai to pay back to their FD holders and have now gone into liquidation. Claims still not processed by liquidator and poor, sick and old, investors are suffering. Kindly bring this to the notice of higher-ups in the MCA and others to help such people. Thanks. U K Saluja, New Delhi.

Prakash Bhate

2 years ago

Good beginning even though late. I hope IDBI and other banks release more of such ads.

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