The proposed 'Competition Commission' would be empowered to restrain companies from indulging in deceptive marketing practices, which would result in monopoly of business establishments in a specific sector.
Sources told Business Recorder on Friday that the proposed 'Competition Act, 2007' has laid down five situations which would lead to deceptive marketing practices. The commission would be given legal backing to take action against those companies involved in wrong marketeering techniques to dominate the market.
Under the proposed law, no undertaking would enter deceptive marketing practices. Deceptive marketing practices would be considered if a company resorts to distribution of false or misleading information which is capable of harming the business interests of another undertaking.
Secondly, distribution of false or misleading information to consumers will include distribution of information lacking a reasonable basis, related to price, character, method or place or production, properties, suitability of use or quality of goods.
Companies would be considered to be indulging in deceptive marketing practices if they conduct false or misleading comparison of goods in the process of advertising. Similarly, the fraudulent use of another's trademark, firm name, or product labelling or packaging would also be considered as wrong marketing practice.
Through the proposed Competition Act, 2007, the commission would be empowered to grant individuals or block exemption pertaining to agreements which substantially contribute to improving production or distribution; promoting technical or economic progress, while allowing consumer a fair share of resulting benefit or the benefits of that clearly outweigh the adverse effect of absence or lessening of competition.
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