It is good to see that Competition Commission of Pakistan (CCP) has lately become more active in checking deceptive market practices as provided under the law. According to a news item in this newspaper on 15th August, 2017, it has directed companies and other undertakings to ensure that, while marketing their products, the advertising claims must be based on reliable scientific evidence, particularly if the product involves health and safety claims. CCP has also directed companies to print clear and conspicuous disclaimer/disclosure along with the claims which the consumers could easily notice and understand. Section 10(2)(b) of the CCP Act provides that claims made by an undertaking must have a reasonable basis for the products' price, character, method or place of production, properties, suitability for use, or the quality of goods. The recent CCP's enforcement orders in this connection included a penalty of Rs 10 million on a company for describing its product as Pakistan's No 1 rated soap, Rs 65 million on dairy companies for marketing tea whiteners as milk, Rs 2 million on an education entity for showing false affiliation with CFA institute, Rs 150 million on oil company for deceptively advertising its petroleum products and Rs 20 million on a food company for deceptive marketing practices.

We feel that the CCP's latest activism to check deceptive marketing practices is a very good move to safeguard the interests of consumers and is quite in line with the international standards where such a crime is taken very seriously and properly punished. While the problem in foreign countries is now almost non-existent, it was becoming a common practice for the companies in Pakistan to advertise their products, both in the print and electronic media, as No 1 or No 1 rated on the basis of vague surveys made by unknown entities. This rendered such claims not only dubious but harmful for consumers besides distorting competition in the market. Although the Competition Act, 2010 is meant to protect consumers and companies from deceptive marketing practices and CCP is adequately empowered to impose penalties and propose remedies in this regard, the process is slow and does not deter the wrongdoers in a meaningful way. Violations of Section 10 thus remain quite common and mostly involved deceptive marketing practices such as hiding material information, giving wrong or no disclaimer at all and quoting surveys lacking credibility. The renewed focus of the CCP on deceptive marketing practices is a very good beginning to block such unhealthy practices. Also, while issuing directions, CCP has not forgotten to define false and materially misleading advertisements which could influence the behaviour of consumers. The CCP has made it clear that all representations, whether intentional or unintentional, which are not easily noticeable or easily understandable to consumers but could influence consumers' purchasing decisions are materially false. Similarly, all representations that can give false impression or have the likelihood to induce one's conduct are materially misleading. We could only hope that the latest initiative of the CCP would prove useful in deterring the unhealthy practice of deceptive marketing practice and stop widespread exploitation of consumers. However, it seems that penalties imposed by the CCP on some noted companies are on the lower side and may not prove to be enough deterrent. Secondly, the CCP could only discipline the corporate sector or companies while the problem exists at almost every level. In this connection, mention may be made of fake/adulterated medicines or food items found in all parts of the country. Scourge is so widespread that it would take a lot of efforts to eradicate it completely from the economy and satisfy consumers that what is written on the label is really true.

Copyright Business Recorder, 2017