The Competition Commission of India (CCI) recently ruled that allegations of deliberate misleading of consumers through misrepresentation and false advertising by enterprises do not constitute violation of the Competition Act, 2002..The CCI held, "The Commission observes that alleged deliberate misleading of consumers through misrepresentation of the qualifications of its surgeon and engagement in false advertising by the OP do not raise any competition issue under the provisions of the Act.".The case was initiated by Moses Pinto, a resident of Margao, who was admitted to Victor Hospital on August 1, 2023 with symptoms of acute appendicitis. He underwent a laparoscopic appendectomy after which he experienced severe complications, including persistent abdominal pain and infection.Pinto was subsequently referred to BLK-MAX Hospital in New Delhi, where a second surgery revealed that a portion of the appendix had been left behind during the initial operation. This caused Pinto significant physical and financial distress..Pinto filed a complaint with the Goa Medical Council, which uncovered that the doctor did not possess a valid registration with the Council at the time of the surgery, violating the National Medical Commission Act, 2019. Despite this, Victor Hospital allegedly continued to promote Dr Ravi Teja as a qualified "consultant surgeon," misleading patients and gaining an unfair competitive advantage in the healthcare market.The Goa Medical Council, in its judgment on July 19, 2024, acknowledged that Dr Teja had practiced without valid registration for over 10 months and imposed a penalty of ₹10,000 on him. However, Pinto argued that the Council failed to address the broader implications of allowing an unregistered practitioner to perform critical surgeries..Pinto’s complaint to the CCI alleged that Victor Hospital’s actions violated Sections 3 and 4 of the Competition Act, 2002. He claimed that the hospital’s employment of an unregistered surgeon and its misleading advertising practices distorted the healthcare market in Margao. By circumventing regulatory requirements, Victor Hospital allegedly reduced operational costs, allowing it to offer services at lower prices and draw patients away from compliant competitors, he alleged..After reviewing the case, the CCI concluded that the allegations did not raise any competition issues under the Act. The Commission observed that while the informant was aggrieved by the healthcare services provided, the alleged misrepresentation of Dr Teja’s qualifications and false advertising did not constitute a prima facie case of anti-competitive behavior..Thus, the CCI dismissed the case, stating that no further investigation was warranted..[Read Judgment]
