CCP affirms exclusive jurisdiction to combat deceptive marketing practices

August 29, 2024 (MLN): The Competition Commission of Pakistan (CCP) has confirmed its exclusive jurisdiction to prevent and prohibit anti-competitive practices, according to the press release issued yesterday. 

This Jurisdiction is under Chapter II, including Section 10(d) of the Competition Act, 2010. This Section empowers the Commission to restore and maintain market competition, especially in cases of deceptive marketing practices.

A Commission’s bench passed an order affirming its exclusive jurisdiction, which reinforces that the Competition Act of 2010 serves as the specialized legal framework for regulating anti-competitive practices throughout Pakistan. The CCP's consistent application of Section 10 in multiple rulings underscores its unwavering commitment to addressing specific marketing malpractices under its jurisdiction.

The order is issued to address a jurisdictional challenge raised by M/s. S.M. Foods Makers Limited (SFML) and M/s. Volka Foods Limited (VFL).

Upon complaints filed by Ismail Industries Limited, English Biscuits Limited, and Hilal Foods Limited, the CCP initiated an inquiry into the alleged fraudulent use of trademarks and product packaging by SFML and VFL.

The inquiry led to the issuance of show-cause notices to SFML and VFL. In response, SFML filed writ petitions before the Lahore High Court (Multan Bench), challenging the CCP’s jurisdiction.

The CCP's order outlines its authority to combat deceptive marketing practices, such as fraudulent trademark use, firm names, and product packaging, as they are considered distortions of competition that deceive consumers.

The order also dismissed any perceived conflict of jurisdiction with the Intellectual Property Organization (IPO), concluding that the Competition Act, of 2010, specifically addresses anti-competitive practices, including deceptive marketing, without encroaching on the IPO's mandate.

Following this jurisdictional ruling, the CCP will proceed with hearings on the substantive merits of the case.

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