Kolkata-based FMCG major Emami and healthcare firm Johnson & Johnson today informed the Supreme Court that they have amicably resolved their dispute over an advertisement for baby products.
The counsels representing both the companies informed a bench headed by Chief Justice S H Kapadia that the issue was put to rest after a controversial portion of an Emami advertisement was removed.
The counsel for Emami said that it has removed a sentence from its advertisement campaign, stating that its products only have herbal constituents as opposed to some other leading brands that use harmful chemicals.
Admitting it, the apex court disposed of the suit. It had earlier suggested that the two parties arrive at an out-of-court settlement.
Emami had challenged an order of the Monopolies and Restrictive Trade Practices Commission (now the Competition Appellate Tribunal), directing the FMCG firm to withdraw certain emphasised portions such as "leading brands" and "modern baby products" from its advertisement.
According to Emami, the tribunal had passed a cease and desist order without even following the procedures under the MRTP Act.
Johnson and Johnson, the market leader with 96 per cent share in baby products, had opposed Emami's claim that its herbal products were better for babies than that of "leading brands".
The healthcare firm contended that the advertisement, besides being misleading, was aimed against it.
