In a bid to make end of institutional malpractices from the country, the Competition Commission of Pakistan (CCP) has punished a private paint company on deceiving customers in marketing of their products, Daily Times has learnt.
As per available information, the CCP found the company as guilty of violating Section 10 of the Competition Act, 2010.
The competition act 2010 states that no undertaking shall enter into deceptive marketing practices while the deceptive marketing practices shall be deemed to have been resorted to or continued if an undertaking resorts to (commission). It further reads that the distribution of false or misleading information that is capable of harming the business interests of another undertaking.
Moreover, as per act, the distribution of false or misleading information to consumers, including the distribution of information lacking a reasonable basis, related to the price, character, method or place of production, properties, suitability for use, or quality of goods. False or misleading comparison of goods in the process of advertising or fraudulent use of another’s trademark, firm name, or product labeling or packaging.
The document revealed that the CCP found M/s. Nelson Paint Pakistan (Private) Limited as misleading information to the consumers in during their marketing moves. “Hereby the commission imposed a token penalty in the sum of Rs 01 million for violation of Section 10 of the Competition Act, 2010,” the CCP said.
As per document the company was using deceptive claims in their marketing material that their product provided protection against COVID-19.
After receiving a public complaint, a two-member committee of the CCP headed by its Chairperson Rahat Kaunain Hassan. The committee initiated an enquiry to investigate the complaint subsequently and found the company as guilty.
“It has been declared that the company has discontinued deceptive marketing practices and shall not repeat any such activity in the future, the bench took a lenient view and imposed only a fixed token penalty of Rs 01 million,” read the document.
As per complaint, the CCP was informed the said company was distributing false and misleading information to consumers through social media about their products. The complainant cited two major claims that were allegedly violation of Section 10, i.e. “Nelson Extra Stainless (COVID-19 Protection)” and “Nelson Extra Klick Special Matt Enamel (COVID-19 Protection).” It added that they w have taken undue advantage of the prevalent health concerns at the time of the COVID-19 pandemic and attempted to increase its sales through false slogans.
The alleged deceptive marketing practice by M/s. Nelson Paint attracted invocation of Section 10 (2) (a) & (b) of the Competition Act, 2010 which protects the business interests of other undertakings, as well as, consumers from misleading information. The CCP initiated an enquiry to investigate the complaint.
According to the CCP, such steps in order to deter companies from engaging in deceptive marketing practices, particularly the cases in which there would be involvement of health or safety claims.
After analyzing the findings of the enquiry and hearing the arguments of parties involved, the Bench held in its order that Benzalkonium Chloride (BKC) substance is only against bacteria and microbes, but not against viruses, in particular COVID-19.
The Bench also directed the company to withdraw any or all batches of the products that may have been sold or are still available in stock with their distributors and to inform its distributors or buyers regarding the inefficacy of the subject claims. “Nelson Paint was strongly reprimanded to avoid deceptive marketing practices in the future,” it regretted.
