CCP cracks down on cartels, deceptive marketing

July 14, 2025 (MLN): The Competition Commission of Pakistan (CCP) issued 12 major orders during FY 2024-25.

It levied penalties amounting to Rs1.007 billion against businesses engaged in anti-competitive conduct across critical sectors such as fertilizers, poultry, automobiles, pharmaceuticals, real estate, food, hygiene products, paints, and education.

Demonstrating a stronger enforcement approach, the CCP streamlined hearings by eliminating unnecessary delays, according to the press release issued today.

This fast-track mechanism has improved the Commission’s ability to resolve cases and enforce the Competition Act more effectively.

Of the 12 orders issued, eight pertained to deceptive marketing practices, while three were related to cartelization and price fixing.

One order was issued on the direction of the Lahore High Court to examine CCP’s jurisdiction in a case concerning deceptive and fraudulent use of a trademark under Section 10(2) of the Competition Act.

In a landmark cartelization case, CCP imposed a total fine of Rs375 million on six urea manufacturers and their trade body, the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC), for engaging in price-fixing.

Each company was fined Rs50 million, while FMPAC was fined Rs75m.

Another significant penalty of Rs155m was imposed on eight poultry hatcheries found guilty of fixing prices of day-old broiler chicks.

In deceptive marketing cases, Kingdom Valley was fined Rs150m for making false claims about its housing project.

Unilever and Friesland Campina Engro were each fined Rs75m for falsely marketing frozen desserts as ice cream.

Additionally, Unilever faced a separate Rs60m fine for misleading advertisements related to its Lifebuoy products.

Al-Ghazi Tractors received a Rs40m fine for making unsubstantiated fuel efficiency claims.

Hyundai Nishat Motors was fined Rs25m for misleading advertisements about the Hyundai Tucson SUV.

3N Lifemed Pharmaceuticals was fined Rs20m for using fake certification for dialysis machines; however, the Competition Appellate Tribunal (CAT) later reduced this fine to Rs2m.

British Lyceum and Diamond Paints were fined Rs5m each for publishing deceptive advertisements.

"Cartelization is a serious offence and will not be tolerated," stated CCP Chairman Dr. Kabir Sidhu.

He stressed that cartels undermine economic growth, infringe on consumer rights, and discourage investment.

He further warned that industry associations must not serve as platforms for price collusion or market abuse, as such conduct exploits the entire nation.

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