CCP issues letters to beverage giants over dangerous TV commercial stunts

May 23, 2024 (MLN): The Competition Commission of Pakistan (CCP) has taken notice of extremely dangerous stunts performed in the TV commercials (TVCs) of leading beverage manufacturers and has issued them letters demanding an explanation regarding the showcasing of these physical stunts.

These stunts promote soft and energy drinks without advising viewers not to attempt similar stunts independently on their own, as they have been performed by professional experts under proper safety arrangements and are fictional displays.

While screening of such stunts is not a violation of Pakistan’s Competition Law, the absence of proper disclaimers advising viewers to avoid attempting such stunts amounts to withholding material information from their consumers, especially young adults.

CCP has warned these companies of their potential violation of Section 10(2) (b) of the Competition Act, 2010.

This section prohibits the dissemination of false or misleading information to consumers. The non-disclosure of material information or relevant disclaimers also amounts to deceptive marketing practices and constitutes a violation of this section.

The Commission has explained that ‘misleading information’ refers to statements that can give a wrong impression, lead to errors in conduct, thought or judgment, misinform due to vagueness or omission, and may not necessarily be deliberate.

It further clarified that ‘false information’ includes statements that are contrary to truth or fact, imply conscious wrongdoing or culpable negligence, have stricter and stronger connotations, and are not readily open to interpretation.

The CCP has directed the companies to explain their non-compliance with the explicit provisions of Section 10 of the Competition Act, 2010, regarding the subject TV Commercials.

The companies are required to furnish their explanations within seven days of the issuance of the Commission’s letters.

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