Business News of 2014-04-24

Court orders MTN to stop promotion

An Accra Circuit court has placed an interim injunction on MTN Ghana, preventing it from continuing with the “MTN Rio” promotion.

The injunction, which will be sustained for 10 days, restraints MTN Ghana, its agents, assigns, servants, affiliates and associates from promoting, sponsoring and marketing any illegal lottery disguised as a consumer promotion.

The court, which was presided over by Mr Francis Obiri, granted the National Lottery Authority’s request on Wednesday, pending the determination of the matter. Mr David Lamptey, General Manger of Prosecution and Enforcement at the NLA, said the authority first noticed the promotion through the media.

He said the promotion was not a consumer or marketing promotion, but in fact and in law a lottery, as defined by the courts of Ghana and prohibited by the National Lotto Act.

He noted that, MTN was asked to cease with immediate effect the promotion as well as any sponsorship and mass media blitz campaign of the promotion and contact the authority for further discussions.

He said the authority wrote to MTN on April 16, advising the company to stop the promotion. “The NLA shall commence legal action against MTN in the event that a publication on the termination of this promotion is not given the same publicity connected to its launch within forty-eight hours of this notice,” he added.

He said the authority is seeking the court to impose a perpetual injunction restraining MTN Ghana, its agents and associates from sponsoring, promoting, conducting and advertising the promotion.

It is also seeking an order for forfeiture or confiscation of the prizes and MTN’S equipment and any equipment and machinery employed, deployed and used in the promotion and implementation of the illegal lottery.

“An order compelling MTN to pay into court or an Escrow Account the revenue generated by MTN from the date of the launch of the promotion till the date of cessation or termination by the order,” Mr Lamptey said.

He said the company would also have to pay for legal fees, punitive damages, costs and any other reliefs the court may deem fit.

Source: GNA
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