Tata Chemicals today accused Hindustan Unilever (HUL) of "violating the professional code of business" and "indulging in smear campaigns against competition", as the rivals fight for supremacy in the water purifier segment.
On the other hand, HUL, which makes Pureit brand of water purifier, hit back by saying Tata Chemicals makes "ambiguous" and "misleading" claims about its product Tata Swach.
Claiming that advertising industry watchdog ASCI has upheld its complaint against leaflets circulated by HUL, Tata Chemicals said the rival was denigrating its product.
"Violating the professional code of business, Pureit, the water purifier brand from the Hindustan Unilever, had been misleading consumers through persistent smear campaigns against competition, Tata Swach, the water purifier from the house of Tatas," the statement said.
The company said the Advertising Standard Council of India (ASCI) through Consumer Complaints Council (CCC) directed HUL to withdraw leaflets from the market that had negative claims against Tata Swach.
"The CCC considered the technical data submitted by Tata Swach and concluded that the statement made in the leaflet circulated by Pureit denigrates Tata Swach," it said.
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When contacted an HUL spokesperson said: "Tata Swach makes the ambiguous claim of 'Tested for bacteria as per USEPA standards' which can mislead consumers to believe that Tata Swach meets USEPA standards on safe drinking water."
In the interest of clarifying these misleading claims Pureit put out the leaflets which presented the facts to consumers that Tata Swach does not meet USEPA standards and highlighted the fact that Pureit meets the stringent germ kill standards of USEPA and provides protection to consumers from waterborne diseases, he added.
The US Environmental Protection Agency (USEPA) is responsible for protecting human health and environment in the United States.
"It is pertinent to mention that Pureit has submitted all the relevant technical test results with ASCI which clearly shows that Tata Swach does not meet USEPA standards. We have appealed to ASCI to review the case on the above stated grounds and in the interest of consumer safety and health," he added.
Further, he said: "We wish to also clarify that the promotional leaflets of Pureit against which the complaint has been made are not in use since July 2010."
ASCI General Secretary Allan Collaco declined to comment on the issue.
"ASCI will make an official announcement on the CCC's decisions. I cannot comment on this," he said.
Tata Swach is priced between Rs 499 and Rs 1,199. HUL's Pureit is tagged around Rs 900 to Rs 6,900.