ISLAMABAD: The Competition Commission of Pakistan (CCP) has declared that the effects of deceptive marketing practices through marketing/ advertising campaigns transcend regional boundaries.

The inquiry report of the CCP in the matter of a complaint filed by a multinational company against M/s 3M Pakistan Private Limited (respondent) concluded the initiation of proceedings against the respondent company.

According to the inquiry report of the CCP, it is abundantly clear that the jurisdiction of the Commission is determined by the effects rather than the location of the anti-competitive activity/behaviour. In this day and age, the effects of deceptive marketing practices through marketing/ advertising campaigns transcend regional boundaries. The Complainant’s nationwide presence in Pakistan means that any anti-competitive activity/behaviour, specifically, the dissemination of false and misleading information, capable of harming its business interests, regarding any of its products by the Respondent Company through marketing/advertising campaigns, will, inevitably, exceed or spill over territorial limits of the province.

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Foregoing in view, it is concluded that the Respondent’s violations through the alleged marketing/advertising campaign appears to have a spill-over effect.

In light of the CCP’s findings it can be concluded that by drawing a false comparison of the quality of products between Scotch Brite and Complainant’s Max Scrub in the Karachi region, the Respondent has engaged in false comparison of goods in the process of advertising, prima facie, in violation of Section 10 (2) (c) of the Act.

In light of the available evidences, it can also be concluded that by drawing a false comparison of the quality of products between Scotch Brite and Complainant’s Max Scrub to third party channel partners in the Karachi region, the Respondent has engaged in disseminating false information to consumers, including the distribution of information lacking a reasonable basis related to the quality, characteristics, properties and suitability for use, prima facie, in violation of Section 10 (2) (b) of the Act.

It can also be concluded that by drawing a false comparison of the quality of products between Scotch Brite and complainant’s Max Scrub to third party channel partners in the Karachi region, the Respondent has engaged in disseminating false information that has the capability of harming the business interest of the Complainant, prima facie, in violation of Section 10 (2) (a) of the Act.

Therefore, it is recommended that the Commission may initiate proceedings against M/s 3M Pakistan Private Limited under Section 30 of the Act for the, prima facie, violation of Section 10 of the Act, CCP inquiry report added.

Copyright Business Recorder, 2024