2022 CLD 450 COMPETITION COMMISSION OF PAKISTAN

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SHOW CAUSE NOTICE ISSUED TO MESSRS NESTLE PAKISTAN LIMITED ON COMPLAINT FILED BY MESSRS PARENTS PAKISTAN (SMC-PRIVATE) LTD. VS FOR DECEPTIVE MARKETING PRACTICES S. 10--- Deceptive marketing practices--- Milk--- Conduct of undertaking---Subsequent compliance---Non-imposition of penalty---Scope---Complainant alleged that the respondent had resorted to deceptive marketing practices by disseminating false and misleading information to consumers in the form of its product packaging, labeling, television commercials, advertisements as well as statements made on its official website and social media platforms---Validity---When all the alleged previous advertisements/campaigns were taken holistically then they definitely cast an impression of the products as milk or some better version of milk---Such impression had the tendency to mislead ordinary consumers into believing that respondent's products were actually milk which could be substituted with regular milk in terms of characteristics, properties and benefits--- Alleged advertisements to the extent stated above, that had been mainly discontinued, did contravene S.10(2)(b) of the Competition Act, 2010---Compliance oriented approach had been adopted by the respondent which was appreciated, therefore, a lenient view was taken and no penalty was imposed where contravention had been made out but it had been rectified and duly addressed---Respondent had provided due disclosures, discontinued the impugned advertising material and had consistently committed to refrain from any such deceptive marketing practices and ensured compliance with the provisions of the Competition Act, 2010---Respondent was strongly cautioned by Competition Commission not to repeat any such conduct in future---Proceedings were disposed off accordingly.

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