Deceptive marketing practices: CCP recommends action against 14 pharma companies

The Competition Commission of Pakistan (CCP) has recommended initiation of proceedings against 14 pharmaceutical companies engaged in selling of weight loss products by making false claims of success without adoption of a proper diet plan and exercise regime.
In this regard, the CCP has completed inquiry against several undertakings engaged in the production or distribution and/or marketing of weight loss products for being involved in prima facie violation of the Section 10 (ie, Deceptive Marketing Practices) of the Competition Act, 2010 (Act).
After completion of survey in the major markets of the country, the CCP recommended that in the interest of the public at large, proceedings may be initiated against these companies under provisions of the section 30 of the Act, in accordance with law, for prima facie, violation of the section 10 of the Act and all the other relevant undertakings in the market are warned against such actions.
The Commission took notice of various concerns raised against several undertakings engaged in the production or distribution and/or marketing of weight loss products for being involved in prima facie violation of the Section 10 of the Competition Act, 2010 (Act).
Therefore, the Enquiry Committee has come to the conclusion that some weight loss products may assist in a more effective and faster weight loss progress; however, it is necessary the firstly, none of the undertakings selling such products make any high sounding claims that their products can help an individual make abnormal progress in just a few days as weight loss is a long term process. Secondly, it is absolutely necessary that the undertakings also make clear and conspicuous disclaimers stating that the same would require a healthy regime of diet and exercise to achieve desired results. The undertakings must never give the net general impression that their products will ensure success even without adoption of a proper diet plan and exercise regime.
Furthermore, the enforcement of such practices would not only reduce the probability of consumer injury but would also assist in protecting competing undertakings from anti-competitive behaviour of the violating undertakings as it can be seen from above discussion that there are various genuine weight loss products available in the market which do not have any high sounding false or misleading claims on their marketing material, the CCP inquiry concluded.
The CCP observed that such undertakings, while marketing their products, make various absolute and high sounding claims regarding the quality, suitability of use, characteristics and properties of their products. It has been observed that through such advertisements, the public is being misled into believing that these weight loss products have miraculous effects on the consumer's body within negligible time period and without causing any side effects.
Accordingly, the competent authority initiated an inquiry against such undertakings, in accordance with Section 37(1) of the Competition Act.
The Enquiry Committee was directed to conduct an inquiry and submit an enquiry report by giving findings and recommendations, inter alia, on the following:
(i) Whether the conduct of the undertakings is capable of harming the business interest of other undertakings in, prima facie, violation of Section 10(2(a) of the Act?
(ii) Whether the undertakings are disseminating false or misleading information to the consumers that lacks a reasonable basis, related to character, properties, suitability for use, or quality of goods in, prima facie, violation of Section 10(2)(b) of the Act?
(iii) Whether the undertakings are engaged in false or misleading comparison of goods in the process of advertising in prima facie violation of Section 10(2)(c) of the Act?
In order to ascertain the major players involved in the manufacturing and marketing of weight loss products, the Enquiry Committee conducted a survey in the major markets of Pakistan. After a detailed research in the respective markets, certain undertakings were identified as major players involved in the manufacturing and marketing of weight loss products in Pakistan, the CCP said.
The CCP observed that the overweight and obesity together are becoming one of the prominent causes of death, especially in some of the developed countries around the world. However, the good news is that it is also preventable. Being overweight refers to a state where an individual may have extra body weight. Obesity entails having a high level of extra body fat. Being in either of the states may lead to an increase in various health problems, including type 2 diabetes, high cholesterol, high blood pressure, coronary heart disease, asthma, osteoarthritis, sleep apnea, and certain types of cancer.
Patients suffering from these diseases often turn toward desperate measures and fall for numerous weight loss related scams which promise "miracle" solution for their problems. However, the claims made by such undertakings are often either highly misleading or simply outright false. Therefore, in order to warn the consumers against turning towards such unnatural and nearly impossible cure to their disease, the NIH has provided an overview of the problem in its note "Prescription Medications to Treat Overweight and Obesity," the CCP said.
In light of the discussion, it has been established that weigh loss is a long-term process which demands a complete and sustained alteration in an individual's overall lifestyle, the CCP said.
The CCP further stated that looking for short term fad diets and miracle weight loss programs which revolve around high sounding unsubstantiated claims hardly ever work. Notwithstanding these facts, some weight loss medication, formulae and ingredients have received recognition and endorsements from the relevant departments. However, it is important to note that they are only able to complement the weight loss progress. One cannot rely on them to help in weight loss entirely as a healthy lifestyle comprised upon a controlled diet and exercise regime are necessary to achieve any long term and sustained results.