CAT upholds CCP penalty on battery manufacturers for concealing product info

July 26, 2024 (MLN): The Competition Appellate Tribunal (CAT) has unanimously upheld the level of penalty imposed by the Competition of Pakistan (CCP) on ‘Dry & Acid-Lead’ Battery manufacturers for concealing crucial product information from consumers.

In a recent judgment, CAT found the CCP’s penalties - PKR 1 Million each along with a per day penalty of Rs100,000 - fair and proportionate and has directed Millat Industrial Products Ltd and Century Engineering Industries (Pvt) Ltd to deposit the amount of penalty within the stipulated period.

The CCP received a formal complaint that various battery manufacturers were misleading consumers about their dry and acid-lead batteries by not disclosing material information such as product capacity on the products’ body, packaging and warranty cards.

Following a thorough inquiry, the CCP concluded that the absence of this vital information prevented consumers from comparing and differentiating the quality, suitability and price of the batteries.

This omission not only deceived consumers but also disrupted fair competition in the market.

Therefore, the CCP imposed the penalties, citing violations of Section 10 of the Competition Act, 2010.

Millat Industries and Century Engineering filed an appeal against the CCP’s order before CAT.

However, CAT while dismissing the appeal, directed both undertakings to deposit the main penalty of Rs1 Million along with a per day penalty of Rs100,000, starting from 31.05.2018 to 12.06.2018, within 60 days from the date of CAT’s order.

Against the CAT's order, both parties have filed appeals before the Supreme Court of Pakistan, which are currently awaiting adjudication.

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