CCP Issues Show Cause Notice to Unilever and 3 Others for Deceptive Marketing - Android

The Competition Commission of Pakistan (CCP) has issued show-cause notices to four companies for prima facie violation of Section 10… Read More

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The Competition Commission of Pakistan (CCP) has issued show-cause notices to four companies for prima facie violation of Section 10 of the Competition Act, 2010.

Reckitt Benckiser Pakistan Limited had sent a formal complaint that Unilever Pakistan Limited had been distributing false/misleading information by making absolute claims regarding its products ‘Lifebuoy soap and handwash’.

The inquiry report concluded that Unilever Pakistan has been harming the business interests of other undertakings, and misleading consumers by making absolute claims about the products in question. Some of these claims were “100 percent guaranteed protection from germs”, the “World’s No. 1 Germs Protection Soap”, and “99.9 percent germ protection in 10 seconds.” The disclaimers about these claims were printed in tiny fonts and are hardly noticeable.

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Unilever Pakistan Limited has been served a show-cause notice for prima facie violation of Section 10 of the Act on the recommendations of the inquiry.

Additionally, a France-based company called ‘KENNOL Performance Oil’ had made a formal complaint against three Pakistani firms, namely Kennol Petroleum (Pvt.) Limited, the Dewan Oil Store, and Japan Lube Petroleum, for copying the packaging of its product KENNOL ULTIMA 20W60.

KENNOL Performance Oil stated that its product KENNOL is registered in France and with the Intellectual Property Organization (IPO) in Pakistan, and that it has not authorized any other firm to use it in Pakistan. Hence the respondents, Kennol Petroleum, the Dewan Oil Store, and Japan Lube Petroleum have been misleading consumers about their products.

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The CCP’s inquiry concluded that the trademark belongs to KENNOL Performance Oil, and that no one in Pakistan is authorized to use it. It also concluded that Kennol Petroleum, Dewan Stores, and Japan Lube had been engaged in the copycat packaging of KENNOL Performance Oil’s product to deceive consumers and harm its business interests.

Both these actions are prima facie violations of Section 10 of the Competition Act, for which the CCP has issued show-cause notices to Kennol Petroleum, the Dewan Oil Store, and Japan Lube Petroleum, and has directed them to respond to the notices.

The CCP is mandated under the Competition Act, 2010 to ensure free competition in all spheres of commercial and economic activities, to enhance economic efficiency, and to protect consumers from anti-competitive practices and deceptive marketing practices.

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