Background facts:

The CCP acted on a concern raised by the Consumer Association of Pakistan, that paint manufacturers were hiding tokens or redeemable coupons in paint packs without adequate disclosures, leaving the consumers largely unaware of this practice, hence violating Section 10 of the Competition Act, 2010 that deals with deceptive marketing practices.

The relevant undertakings were given the following directions through the order dated 31.03.2012 (which were to be complied within a period of 60 days a compliance report was to be filed by March 30, 2012):

1. to ensure that all advertisements, promotional materials or instruction manuals pertaining to the paint packs, whether electronic, printed or otherwise, were to be modified to disclose the presence and the price / value of the token on each pack.

2. The aforesaid disclosure should be conspicuous on the packaging of the paint pack.

3. The undertakings, during the 60 day interim period, would issue periodic advertisements regarding the presence of the tokens.

However, taking notice of various concerns raised regarding the non-compliance of the Paint Order by the Paint Manufacturers, the Commission conducted a survey on the 9th and 10th of December 2013, wherein it was revealed that out of fifteen only four were found in compliance with the Paint order. Thus, proceedings under Section 38 of the Act were initiated, for non-compliance of Paint Orders against the Respondents.

Order:

The second survey concluded in the year 2016 showed that the Respondents were fully complying with the Commission’s directions. The compliance report filed by the Respondents dated 11-10-2020 also provided proof of the said compliance. Further in light of the actions taken by the Respondents and recognized status of compliance of each Respondents, it was concluded that the Respondents were not liable to be penalized under Section 38(1) (b) of the Act for non-compliance of the Commission’s directions within the Paint Order.