CCP imposes penalty of Rs 26.903 billion for deceptive marketing practices

October 31, 2018: The Competition Commission of Pakistan (CCP) has imposed penalty of Rs 26.903 billion on companies from different sectors for deceiving consumers and cartelization in market in the last ten years.

The Commission has imposed penalty of Rs 206 million in 2008, Rs 6.786 billion in 2009, Rs 275 million in 2010, Rs 86 million in 2011, Rs 1.224 billion in 2012, Rs 17.733 billion in 2013, Rs 143.25 million in 2014, Rs 302 million in 2015, Rs 150 million in 2016, and Rs 15 million during 2017, a senior official of Competition Commission of Pakistan (CCP) told APP.

The CCP has given notices to the companies from different sectors including banking, communication, oil and gas, health care, port and shipping, property and constructions, telecommunication, poultry, fertilizers, cement and aviation sectors for deceptive market practices and cartelization, the official said.

He said that CCP is mandated under the Competition Act to ensure free competition in all spheres of commercial and economic activity, to enhance economic efficiency and to protect consumers from anti-competitive practices including prohibited agreements.            

The official said that CCP imposed penalty on seven companies in the last month of September for using deceptive marketing practice and cartelization in open market.

He said the CCP has imposed a penalty of Rs 4.25 million on seven fabric and packaging companies for deceptive marketing practices and fraudulently using the registered trademark of ShajarPak (Pvt) Limited, a fabric manufacturer.

He said that ShajarPak complained to CCP that eight companies including five fabric manufacturers, Ahmad Pasha Collection, Aamir Cloth House, M. Ramazan Fabrics, Pasha the Designer Fabrics, Sufi Cloth House, and three packaging manufacturers, Baba Plastic, Ahmad Plastic and Dabba House, and Kausar Brother Plastic Corner were falsely using its registered trademark ‘Pasha Fabrics’ on the packaging and labeling of their products. ShajarPak further said that the unauthorized and fraudulent use of its trademark by these companies was harming its business interest.

The CCP’s inquiry established that ShajarPak had not authorized any of the above companies to use its trademark.

By copying the trademark and trade dress, these companies were deceiving consumers and harming the business interest of ShajarPak in violation of Section 10 of the Competition Act, 2010.

Show cause notices were issued to all of them on the recommendation of the inquiry report.

(APP)