The Competition Commission of Pakistan (CCP)'s recent enforcement orders against firms engaging in deceptive marketing practices, set key principles of fair advertising, and serve as essential guidelines both for marketers and producers of goods and services.
In an order passed against a leading dairy company, which was fined Rs 35 million for deceptive marketing, the CCP cautioned firms against misleading comparison of goods with the competitors' products in order to make profits.
The said firm, in its advertising campaign, had made a Supreme Court's judgement the basis of its milk being declared healthy and fit for human consumption, while defaming the dairy products of competitors in the same advertisements.
The CCP's order stated that the dairy firm was not only damaging the competitors' reputation, but also misleading consumers.
In the order, the CCP categorically stated that any marketing slogans that influenced consumers decisions, must be up to the mark and accurate in terms of information.
Similarly, in another order, the CCP noted: "In today's increasingly health-conscious environment, consumers are getting more attuned to the health-related claims made by Fast Moving Consumer Goods (FMCG) especially those directed at children and parents. Each year, the FMCGs spend billions of rupees marketing their products to elderly, adults, youth, children, and adolescents."
The order noted that in view of that, firms needed to be truthful, while advertising and marketing their products.
The order also emphasized a compliant behaviour on part of those already fined by the CCP for previous violations.
"The conducts (of the respondent) cannot be taken leniently as the respondent in the past filed complaints against its competitors for similar nature of claims and has also been show caused for violating Section 10 of the Competition Act," the order stated.
In yet another interesting order, the CCP had received a formal complaint from Nimco Corner alleging that its registered trademark, firm name, and product packaging were being fraudulently used by Mr Nimko Corner and Karachi Nimco. Nimco Corner claimed to be the sole proprietor of the registered name 'NIMCO' since 1947, as well as, distinctive logos and packaging.
The enquiry found that Mr Nimko Corner and Karachi Nimco were imitating the trademark, packaging, color scheme, and design of Nimco Corner.
On the enquiry's recommendations, show cause notices were issued to both companies.
The order established that Mr Nimko Corner not only used the identical colour schemes, taglines, shapes, and patterns but also copied the exact taglines, placement, graphical patterns and font style.
Instead of investing in developing its own brand, Mr Nimko Corner opted to free ride on the trademark, "NIMCO" and the goodwill created by Nimco Corner.
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