BACKGROUND FACTS:

The Competition Commission of Pakistan (hereinafter “the Commission”) took notice of adverts of ‘Fresher Juice’ both in print and electronic media, and issued Show Cause Notice No. 25/2011 dated September 21, 2011 to M/s Al-Hilal Industries (Pvt) Limited, for prima facie violation of Section 10 (1) read with Section 10 (2) (b) of the Competition Act, 2010 (hereinafter “the Act”) as they claimed to be 100% pure juice.

In its analysis, the Commission accepted that it is beyond its mandate to enforce standards/labeling requirements under the respective laws, however, it had the power to intervene if the labelling had the effect of confusing and misleading the consumer as to the true nature of the product. Additionally, with respect to the ingredients section, the Commission reiterated its earlier rule that “fine print disclosures are inadequate in correcting the deceptive impression”. Similarly, it also relied on international case law to quote that “one true statement in the presence of a mass of false and misleading statements does not render another misleading advertisement non-misleading” and “the reasonable consumer should not be expected to conduct a comparative analysis of information contained in secondary labeling but should be able to make an informed and not misleading choice based on information conspicuously displayed.

ORDER:

Based on the written and oral submissions, the commission hold that undertaking’s marketing in relation to its product, Fresher Juice, is deceptive and found to be lacking a reasonable basis, in terms of Section 10 (1) read with Section 10 (2) (b) of the Act. However, it needs to be appreciated that the undertaking has given the assurance on stamp paper to rectify such practice and remove from all labels as well as print and electronic advertisements of its product, the claim of “100 % pure” as of January 30, 2012. Keeping in view the cooperation extended, the Commission, owing to its compliance oriented approach, particularly in OFT matters is not imposing any penalty for the committed violation. However, the undertakings were reprimanded to ensure more responsible behaviour in the future with respect to the marketing of their products. Subsequently, if there are other undertakings carrying out deceptive marketing of similar nature with respect to juice products they need to be proceeded against in order to rectify such conduct; failing which, the Commission shall take a stricter penal action.