Century Plyboards (India) Limited - CenturyPly

Recommendation: Upheld | Medium: General Public

The ASCI had approached the advertiser for its response in addressing the grievances of the complainant and forwarded the details of the complaint, verbatim, to the advertiser with a request to respond to the same. The advertiser was offered an option to seek an Informal Resolution (IR) of the complaint by modifying or withdrawing the claim in the advertisement, or alternately to substantiate the claim with supporting data. The advertiser was also offered an opportunity for a telecon with the ASCI Secretariat, which they did not avail and requested for an extension of 10 days to submit their response. The deadlines stipulated by Consumer Complaints Council (CCC) procedure exist keeping in mind the immediate and widespread impact that advertisements have on the public. Consequently, any action which is needed to be taken with respect to the same is required to be prompt and urgent. It is for this purpose that the deadlines, as stipulated, are set for advertisers/broadcasters etc, and the CCC itself makes it a priority to deal with every complaint before it as expeditiously as possible. However, as a special gesture, the advertiser was granted an extension of additional two business days from the original due date to respond. The advertiser submitted that in 1998 ASCI initiated proceedings against one of its advertisements, leading to a suit before the Hon’ble Bombay High Court. The Court held that ASCI is not a regulatory body, lacks authority to investigate complaints or issue directions, especially since the Company is not a member of ASCI. The judgment, of July 1999, has attained finality and operates as res judicata. The advertiser asked ASCI to confirm if the judgment was challenged or set aside and, if not, to reconsider the recent show-cause notices. In response to the objections raised against the claim, the advertiser stated that their trademark "CENTURYPLY BOND 710" is a registered composite label mark in use since 2012 and does not mention "IS 710" or claim certification under it. The product is certified under IS 303:2024, which requires water resistance, and the term "water proof" used in their advertisement aligns with this. ASCI clarified to the advertiser that the 1999 High Court order cited by them was later set aside by consent and does not operate as res judicata. ASCI further stated that ASCI can review advertisements of both members and non-members and only issues recommendations not binding orders. ASCI acknowledged the advertiser’s claim about the registered trademark “CENTURYPLY Bond 710” but requested for a copy of the trademark certificate and supporting evidence of compliance with IS 303:2024 standards. In response to the above, the advertiser provided copy of the trademark registration certificate for “CENTURYPLY Bond 710” issued by the Registrar of Trademarks. They further requested for two weeks time to compile additional supporting documents and respond to the complainant’s objections. ASCI acknowledged the advertiser’s response stating that, despite previously granted extensions, no further extension for submitting a detailed response could be allowed to ensure timely resolution of complaint. ASCI scheduled a zoom meeting to discuss the matter and shared the meeting details with the advertiser. However, the advertiser did not join the meeting offered by ASCI. The CCC viewed the Website advertisement (https://www.centuryply.com/plywood/bond-710) considered the complaint, and the advertiser’s response along with the claim support data. The CCC observed that the advertiser is promoting their product named `Bond 710’ on its website, describing it as “Boiling Water Proof Marine Grade plywood”. The advertiser has submitted a trademark registration certificate for `Bond 710’ and clarified that their product holds IS 303: 2024 certification. The use of the numeral 710 which is a part of their composite label mark cannot be construed as resembling the Indian Standard IS 710. The CCC discussed that using `710’ in the product name together with the claim, “Boiling Water Proof Marine Grade”, is likely to mislead consumers by implication that the plywood meets the BIS marine grade standard IS 710. This standard ensures the plywood is fully waterproof for marine environments. However, the advertiser’s product is certified only under IS 303, which applies to plywood that is water resistant but not suitable for marine grade use. The CCC was of the view that holding a registered trademark does not allow the advertiser to make a false claim. By promoting the product as “Boiling Water Proof Marine Grade plywood” and using “Bond 710” in the brand name, the advertiser misrepresents the actual performance of the product. Based on this assessment, the CCC concluded that the Website claim, “Bond 710 is a premium Boiling Water Proof Marine Grade plywood”, is false, is misleading, and is likely to lead to widespread disappointment in the minds of consumers. The said claim contravened Chapter I, Clauses 1.1, 1.4 and 1.5 of the ASCI Code. This complaint was UPHELD.