CCP issues show cause notices for deceptive marketing

ISLAMABAD: Fair trade watchdog Competition Commission of Pakistan (CCP) issued show cause notices to six battery manufactures for misleading consumers and engaging in deceptive marketing practices.

The commission on Thursday said the inquiry found these battery makers in ‘prima facie’ violation of Section 10 of the Competition Act 2010.

The CCP conducted an inquiry after receiving a formal complaint that various battery manufacturers were misleading consumers about their dry and acid-lead batteries by not disclosing material information, such as product capacity on the products’ body, packaging and warranty cards. 

“By omitting such important material information, the consumer would be unable to compare and differentiate the quality, suitability for use and price of the products,” the commission said in a statement.

Battery manufacturers, which were served show cause notices, include Atlas Battery Ltd, Treet Corporation Ltd, Excide Pakistan Ltd, Pakistan Accumulators (Pvt) Ltd, Millat Industrial Products Ltd and Century Engineering Industries (Pvt) Ltd.

CCP has turned into a non-functional entity as most of its posts of members fall vacant and the ministry of finance seems unmoved to make important hiring in the wake of lingering political situation. 

Sources said currently only two members – Vadiyya Khalil, the commission’s chairperson and member Ikramul Haque Qureshi – are implementing the provisions of the competition laws. 

Member Joseph Wilson completed his job terms in November 2016, and two other members Mueen Batlay and Shahzad Ansar ended their job tenures in January this year, thus vacating the positions to be filled through a competitive process.

Sources said there are chances that the government may move to make key appointments as another main group Securities and Exchange Commission of Pakistan is also operating without commissioners. 

The CCP’s inquiry found that battery manufacturers are deceiving consumers as well as potentially harming the business interest of their competitors.

The inquiry said display of battery capacity is a necessary conduct demanded from the undertakings engaged in manufacturing of dry and lead acid batteries. 

“Imprinting batteries with battery capacity is a necessary practice that is being followed all over the world,” the commission said. “Thus, it’s obligatory for all domestic manufacturers to provide such information clearly and conspicuously not only on the regular marketing materials, such as brochures, websites, TVCs (television commercials), warrant cards etc. but also on the battery body and packaging itself.”

CCP said the enforcement of such practice would reduce the probability of consumers’ injury as well as assist in “protecting competing behaviour of the violating undertakings.” The commission is mandated under the Competition Act to ensure free competition in all spheres of commercial and economic activity, to enhance economic efficiency and to protect consumers from anti-competitive practices, including deceptive marketing practices.