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Urban Company has approached the court against Kent RO Systems, alleging that the company ran a campaign based on false claims.
In a defamation and disparagement suit filed before the Delhi High Court, Urban Company challenged Kent RO’s advertising and social media posts. It argued that the campaign carried false and misleading claims about its Native range of water purifiers.
The suit took place on August 11, according to an exchange filing.
At issue were two selling points of the Native M0, M1, M2, M1 Pro and M2 Pro models: a two-year filter life and a two-year service life.
Urban Company said Kent RO’s campaign dismissed these claims as a ‘marketing gimmick’. It told consumers that using Native purifiers was ‘unsafe’ and ‘risky’.
The matter came up for hearing on August 12. Kent RO told the bench it would withdraw the disputed advertisements. It also agreed not to publish or run similar advertisements or promotional material.
The undertaking covered claims about purifiers offering a two-year filter life or a two-year no-servicing feature. It covered claims that disparage Urban Company, according to the exchange filing.
Per Urban Company, Kent RO has 15 days from August 12 to take down the advertisements and social media content.
The court passed the order that day, but the court’s website published it only on August 22.
This is one strand of a larger tangle.
Urban Company said other matters remain sub judice, among them a patent infringement suit brought by Kent RO and Urban Company’s counterclaim against that patent. It has separately sued Kent RO for tortious interference.
The disclosure follows a strong session for the stock, which closed 8.19 per cent higher at Rs 157.41 on Friday.
The shares are up nearly 20 per cent this year, but down about 6 per cent over 12 months.
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