Background of the Case:

Kitchen Stone Foods’ competitors, Seasons Foods and Quick Food Industries, complained to the CCP that it was deceiving consumers and harming their business interests by claiming that its products were “100% Non-Processed,” or “Pakistan’s first non-processed frozen food.” The company was also falsely comparing the complainants’ products and spreading wrong information about their processed foods.

CCP’s enquiry found that Kitchen Stone Foods falsely compared the products of Seasons Foods and Quick Foods and associated them with the risks and causes of cancer by citing different articles and misleading narrations on its Facebook page. It had also posted statements such as “Processed Meat Causes Cancer: Switch to Kitchen Stone Products.” The company, however, could not substantiate its claims regarding its products being “100% Non-Processed” and “Pakistan’s first non-processed frozen food.” Deceptive marketing practices by Kitchen Stone Foods not only deceived consumers but also harmed the business interest of its competitors.

Order:

The Commission, after a review of the available record, concluded that the Respondent’s product may or may not contain entirely synthetic ad unnaturally processed ingredients including meat and hence the Respondent’s advertising claims regarding its products being 100% non-processed and being Pakistan’s first non-processed meat amounted to disseminating false and misleading information.

The Commission also held that there was no reasonable basis for the Respondent’s representation that its products reduce the chances of contracting cancer in contrast to the products of the Complainants.

The Commission also stated that the deceptive marketing practices carried out by the Respondent are likely to mislead consumers in terms of their purchasing decisions in the circumstances, and therefore the same could harm the business interests of the competing business undertakings in contravention of Section 10(2)(a) read with Section 10(1) of the Competition Act.

The Commission imposed a penalty of PKR 1 million on Kitchen Stone Foods, for running a deceptive marketing campaign for its food products in violation of Section 10 of the Competition Act, 2010.

The order also appreciated Kitchen Stone Foods for honouring its commitment to withdraw the deceptive marketing campaign and changing the packaging material to address its concerns. The Respondent was warned that future violations of the Competition Act would entail severer penal consequences.

CURRENT STATUS:

Kitchen Stone filed an appeal before CAT challenging the order. Matter is subjudice before CAT.