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Monopolies panel allows newspapers to offer cover for readers

The Monopolies and Restrictive Trade Practices Commission has allowed Malayala Manorama and other newspapers in Kerala to continue with the insurance scheme extended for their subscribers as it was not prejudicial to the public interest or the interest of the subscribers in general.

Holding the case against Malayala Manorama, Mathrubhumi and Kerala Kaumudi as non-maintainable, the commission said the mere offer of an insurance cover to the subscribers, free of charge, ''cannot be held to be an unfair trade practice''.

The MRTPC rejected the plea of the complainant, Noothanam editor Xavier Paul, to give a cease-and-desist order on the ground that the impugned insurance scheme does not fall foul of the Section 36 a(1) of the MRTP Act, 1969.

Though the circulation of the newspapers, in question, had increased as a result of the scheme, the commission felt that the impugned scheme gives additional benefit of Rs 100,000 or Rs 200,000 (depending on the newspaper and the scheme) to the subscriber who dies in an accident.

Earlier, a notice of enquiry was issued after Preliminary Investigation Report was submitted by the director general (investigation and registration). Noothanam in its complaint had alleged that the three newspapers were adopting and indulging in unfair trade practices to boost their sale and circulation.

According to the PIR, the newspapers entered into an agreement with the New India Assurance Company for providing insurance cover to the subscribers under the Group Janta Personal Accident Scheme.

The duration of the scheme is for one year, in the first instance, and may be renewed from year to year. The newspapers had paid the entire premium amount at the rate of Rs 3 per subscriber, the PIR said.

''What is noteworthy is that the newspapers are not collecting even a single paisa additionally from the subscribers who are registered under the scheme.''

A salient feature of the scheme is that for entitlement to the benefit under the scheme, application forms acceptable for registration are published in these newspapers only and a person has to be a subscriber for using the form. The scheme is open to all the existing and newly enrolled subscribers.

The PIR concluded that although the subscribers are not required to pay any extra amount to participate in the scheme, they have necessarily to subscribe to the newspapers and have to file an application form which is printed therein for registration and have to remain subscribers during the period the scheme is in force so that they remain entitled to the benefits under the scheme.

The PIR also mentioned that after the scheme was launched, the sale and circulation of the newspapers has increased considerably.

The respondents argued that there is no case of unfair trade practices as the prices of the newspapers have not been increased and the additional benefit of insurance cover is being provided absolutely free to the subscribers who have been, in any case, subscribing to these newspapers. Moreover, the subscribers stand to gain by reading the newspapers.

UNI

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