The Competition Commission of Pakistan (CCP) has completed seven inquiry reports against companies involved in deceptive marketing practices and issued three policy notes to government departments, including negative impact of capacity tax on beverages which was withdrawn in budget (2014-15).
The data analysed from the website of the CCP revealed that since appointment of Dr Joseph Wilson as Acting Chairman CCP on August 23, 2013, show case notices have been issued to several companies involved in anti-competitive behaviour and deceptive marketing practices. So far, no fine has been imposed on the undertakings violating competition laws during the period under review.
The commission also approved 28 mergers and acquisitions of undertakings during the tenure of acting CCP Chairman. The CCP is also reviewing different sectors to check cartelization under competition laws, sources said. Details revealed that the Commission issued various directions to Indus Motor Company due to unfair trading conditions offered to the customers on November 8, 2013. The violation of Section 3 leads to the indulgence of competitive issues which are covered up by the Commission.
The CCP has issued a policy note to HEC to revise its Equivalence Standard (ES) for Master's degree programmes to create an exception for those who attained their master's degrees in a period prior to the introduction of equivalence standard to create a level playing field among all the Master's degree holders.
The CCP has issued another policy note on the Non-Issuance of Flare-Gas license by OGRA. The Commission through the note to OGRA recommended the exercise of power to encourage investment in the sector, f act under the OGRA Ordinance and take a decision on license applications by potential new entrants in the flare gas distribution at the earliest to remove barriers.
The Commission has issued a policy note to the government against imposition of capacity tax on beverage industry for the small and local industry. The CCP took notice of the imposition of Federal Excise Duty and sales tax on production/installed capacity instead of actual sales.
The Commission prepared a report in the matter of complaint filed by M/s Agritech Limited against M/s Tara Group Pakistan for deceptive marketing practice. As per report, the deceptive marketing practices have a direct impact on the public at large. It is in the interest of the general public that Tara Group should be stopped to advertise their products/services in an unfair and misleading manner and encourage them to resort to the advertising practices which are transparent and give consumers true and correct information.
Another enquiry report was released by the Commission in the matter of the complaint filed against Internet Service Providers for deceptive marketing practices. The enquiry report concluded as false and misleading advertisements that induce consumers to purchase the product and hence it gives the undertaking a competitive edge over other competing undertakings. And the Respondent has no reasonable basis to make the claim of 'unlimited Package'. Therefore, all Internet Services providers (ISPs) were provided sufficient time period to remove the claim.
The Commission's also filed a report in the matter of Complaint filed by M/S Akzo Nobel Pakistan limited & M/s Diamond Paints Industries (Pvt) Ltd against M/s Jotun Pakistan (Pvt) Ltd for deceptive marketing practice. The report is of the considered opinion that Jotun Pakistan has no justification to claim to be 'No 1 Paint' in Pakistan. Thus the Respondent paint manufacturers were provided reasonable time period to remove their claim from their advertising material but they failed to report compliance.
Another report was framed in the issue of complaint filed by K&N Foods (Pvt) ltd against M/s A Rahim Foods (Pvt) Ltd for deceptive marketing practices. After the conclusion of the enquiry report show cause notice was issued to A Rahim Foods for violation of Section: 10 of the Competition Act 2010, ie, deceptive marketing. In the matter of deceptive marketing practices by cellular mobile telecom operators, the CCP issued show-cause notices to all the five mobile companies operating in the country for deceptive marketing and charging hidden fees from consumers.
An enquiry was conducted against M/s Reckitt Benckiser Pakistan Limited for deceptive marketing practices. After issuance of enquiry report, show-cause notice was issued to Reckitt Benckiser Pakistan for deceiving the consumers by their faulty presentation.
In the matter of complaint filed by M/s National Foods Limited against M/s Shangrila (Private) Limited for deceptive marketing practices, the enquiry report led to the issuance of a show cause notice to Shangrila Limited for indulging in deceptive marketing practices by making the claim of being 'No:1 tomato ketchup in Pakistan.' Dr Joseph Wilson addressed the advocacy session organized by Lahore Chamber of Commerce and Industry, Rawalpindi Chamber of Commerce and Industry, Sialkot Chamber of Commerce & Industry (SCCI) and Multan Chamber of Commerce and Industry.
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