ISLAMABAD: The Competition Commission of Pakistan (CCP) has recommended to the federal and provincial governments to amend the registration laws for firms to minimise potential risk of deceptive marketing. According to an official announcement made by the CCP here on Tuesday, the commission issued a policy note to the federal and provincial governments recommending that they suitably amend, within their territorial jurisdictions, the Partnership Act, 1932, the Societies Registration Act, 1860, the Voluntary Social Welfare Agencies (Registration & Control) Ordinance, 1961, the Trusts Act, 1882 and the Co-operative Societies Act, 1925 so as to bar registration of potentially deceptive firm names with an aim to minimising the potential for deceptive marketing. The policy note further recommends that the relevant name registration authorities at the federal and provincial levels, such as the Registrar of Firms, the Registrar of Joint Stock Companies and the Registrar of Co-operative Societies, take steps to create a coordination and cross-verification mechanism amongst themselves so that potentially deceptive firm names cannot be registered anywhere in the country. The registration of deceptively similar names of undertakings is a competition concern as it may lead to the dissemination of information which causes confusion in the minds of consumers. Such information can also cause harm to the value of brands in which businesses have invested heavily. Furthermore, such actions may lead to or amount to deceptive marketing practices in violation of Section 10 of the Competition Act, 2010 (the ‘Act’). It is pertinent to mention here that deceptive marketing practices are harmful for both the end consumers and competing businesses. Numerous cases have been brought before the CCP regarding firms using registered firm names to deceptive effect. The CCP noted that while the Companies Ordinance, 1984 put a bar on the registration of potentially deceptive company names, similar prohibition was not in place for other methods of firm name registration. The policy note has therefore been issued with a view to rectifying this situation. The policy note has been issued under Section 29 of the Act, which empowers the CCP to review policy frameworks to foster competition in all spheres of economic and commercial activity and to suggest legislative changes to the federal and provincial governments.
