The Competition Commission of Pakistan (CCP) has conveyed to the fast moving consumer goods manufacturers that the companies in this sector need to pay special care while advertising of their products by truthfully demonstrating pricing, character, method or place of production and quality of their products and services.
According to an order of the CCP issued here on Tuesday, the CCP bench noted that in today's increasingly health-conscious environment, consumers are getting more attuned to the health related claims made by Fast Moving Consumer Goods, especially those marketed to children and parents.
Each year, the fast moving consumer goods manufacturers spend millions of rupees marketing their products to elderly, adults, youth, children and adolescents. By virtue of this order, the Commission, hereby deems it appropriate to highlight the importance of truthful advertising. The business undertakings involved in this sector need to pay special care that their advertising and promotional material, irrespective of the medium, must truthfully demonstrate the pricing, character, method or place of production, properties, suitability for use and quality of their products and services.
Complainant is a company registered under the Companies Ordinance, 1984 (now Companies Act, 2017) having its registered office at Karachi. The Complainant is involved in the manufacturing of Personal Care, Food and Hygiene Products. Respondent is a company registered under the Companies Ordinance, 1984 and is principally engaged in the manufacturing and marketing of consumer household, antiseptic, and pharmaceutical products. Both the complainant and the respondent squarely fall within the purview of an 'undertaking' as provided under clause (q) of subsection (1) of Section 2 of the Act.
It was alleged in the complaint that the Respondent company is engaged in misleading, deceptive, unsubstantiated and unethical advertisement campaign with respect to its soap product. The upshot of the above discussion is that the Respondent has failed to substantiate the claims made in the advertisement for the said soap and in fact has resultantly engaged itself in deceptive marketing practices in violation of Section 10 (1) of the Competition Act.
The CCP concluded that it is established that the respondent company has engaged in deceptive marketing practices prohibited under Section 10(2) (a) & 10(2) (b) read with Section 10(1) of the Act. Further, the conduct of the Respondent cannot be taken leniently as the Respondent in the past has filed complaints against other undertakings for similar nature of claims and have also been show caused by the Commission for resorting to deceptive marketing practices. Hence, we are constrained to impose a penalty of Rs 30,000,000 on the Respondent company for violation of Section 10 of the Act.
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