The Competition Commission of Pakistan (CCP) has issued a show cause notice to Master Paints Industries (Private) Limited for alleged violation of Section 10 of the Competition Act, 2010, which prohibits business undertakings from engaging in deceptive marketing practices. The show cause notice follows an enquiry by CCP after receiving complaints from Nippon Paint Pakistan (Private) Limited and Buxly Paints Limited regarding print and television advertisements by Master Paints. The complainants alleged that in the advertisements, Master Paints misleadingly compares the quality of paints made by different manufacturers on the basis of tokens, and implies that paint which contains tokens is harmful to buildings. The enquiry report found that Master Paints, prima facie, could not substantiate these claims and as such the advertisements constitute dissemination of false and misleading information as well as false and misleading comparison of goods, which amounts to deceptive marketing practices. Through the show cause notice, Master Paints has been asked to respond in writing within fourteen days and to avail an opportunity of being heard before the CCP. CCP is mandated by the Competition Act to protect consumers from anti-competitive activities including deceptive marketing practices.
The Competition Commission of Pakistan (CCP) has issued a show cause notice to Master Paints Industries (Private) Limited for alleged violation of Section 10 of the Competition Act, 2010, which prohibits business undertakings from engaging in deceptive marketing practices. The show cause notice follows an enquiry by CCP after receiving complaints from Nippon Paint Pakistan (Private) Limited and Buxly Paints Limited regarding print and television advertisements by Master Paints. The complainants alleged that in the advertisements, Master Paints misleadingly compares the quality of paints made by different manufacturers on the basis of tokens, and implies that paint which contains tokens is harmful to buildings.
The enquiry report found that Master Paints, prima facie, could not substantiate these claims and as such the advertisements constitute dissemination of false and misleading information as well as false and misleading comparison of goods, which amounts to deceptive marketing practices.
Through the show cause notice, Master Paints has been asked to respond in writing within fourteen days and to avail an opportunity of being heard before the CCP. CCP is mandated by the Competition Act to protect consumers from anti-competitive activities including deceptive marketing practices.
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