CCP serves Show Cause Notice to Six Battery Manufacturers for Deceptive Marketing

The Competition Commission of Pakistan (CCP) has issued Show Cause Notices to six battery manufacturers for misleading consumers and engaging in deceptive marketing practices in prima facie violation of Section 10 of the Competition Act, 2010.

CCP conducted an inquiry after receiving a formal complaint that various battery manufacturers are 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.

The inquiry found that six battery manufacturers including Atlas Battery Ltd, Treet Corporation Ltd, Exide Pakistan Ltd, Pakistan Accumulators (Pvt.) Ltd, Millat Industrial Products Ltd, and Century Engineering Industries (Pvt.) Ltd were not printing product capacity of their batteries on the products’ body, packaging and warranty cards. By omitting such important material information, the consumer would be unable to compare and differentiate the quality, suitability for use and price of the products.

The inquiry report stated that by engaging in such deceptive marketing practices, the battery manufacturers were not only deceiving consumers but were also potentially harming the business interest of their competitors.

On recommendations of the inquiry report, CPP issued Show Cause Notices to the above battery manufacturers for prima facie violation of Section 10 of the Competition Act.

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 deceptive marketing practices