IN THE MATTER OF SHOW CAUSE NOTICE ISSUED TO MESSRS AL-GHAZI TRACTOR LIMITED REGARDING DECEPTIVE MARKETING PRA

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IN THE MATTER OF SHOW CAUSE NOTICE ISSUED TO MESSRS AL-GHAZI TRACTOR LIMITED REGARDING DECEPTIVE MARKETING PRACTICES VS S. 10 (2)(b)---Deceptive marketing practice---Determination---Net General Impression Test---Scope---While examining a deceptive claim, Commission usually considers "Net General Impression Test" as overall impression from deceptive advertisement, instead of isolated statements of words. Citation Name: 2025 CLD 1478 COMPETITION COMMISSION OF PAKISTANBookmark this Case IN THE MATTER OF SHOW CAUSE NOTICE ISSUED TO MESSRS AL-GHAZI TRACTOR LIMITED REGARDING DECEPTIVE MARKETING PRACTICES VS Ss. 10 & 30---Deceptive marketing practice---False statement---Show cause notice was issued to respondent-establishment for claiming its product as 30% more fuel efficient as compared to all such products available in the market---Respondent-establishment had made its claim on the basis of a report issued by Agriculture Mechanization and Research Institute (AMRI)---Validity---Report of AMRI did not support purported claim of respondent-establishment, as it had used the contents of that report in a deceptive manner---Claim of respondent-establishment was without any reasonable basis---In its correspondence with the Commission, AMRI denied granting certification or approval to respondent-undertaking and had categorically denied issuing any report, finding or information that could support the claim made by respondent-establishment---AMRI explicitly prohibited respondent-establishment from using it's name for publicity of its products and this was a substantial evidence of AMRI's view on actions and claims of respondent-establishment which could mislead the consumers---Report by AMRI compared products of respondent-establishment with that of one competitor only---Such claim of respondent-establishment was inherently defective and misleading and prohibited under S. 10 of Competition Act, 2010---Deceptive claim was carefully crafted with the intention of deceiving ordinary customer into believing that products of respondent-undertakings were superior in terms of fuel efficiency and would result in additional savings for the users---Respondent-establishment tried to create deceptive impression of performance of the product, enticing consumers by promising significant economic benefits that did not actually exist---By presenting such false and misleading information, respondent-undertaking aimed to gain an unfair advantage in the market, misguiding consumers and distorting their purchasing decisions---Such practice not only undermined consumer trust, but also disrupted fair competition within the industry---It was imperative for regulatory bodies to address such deceptive claims to protect consumers and ensure a fair and transparent marketplace---Respondent-undertaking had violated Ss. 10(1) & 10(2)(b) of Competition Act, 2010---Competition Commission directed respondent-establishment to cease and desist from carrying out deceptive marketing practices by suggesting that their products provide up to 30% additional fuel saving as compared to its competitors---Competition Commission further directed respondent-establishment to modify all advertisements and personal material and promotional material, whether through newspaper, TV campaign, in electronic or digital media, social media posts or on their official websites and to display only truthful claims regarding their product---Competition Commission also directed respondent-establishment to file compliance report with respect to implementation of the directions as well as deposit of penalty by not later than 30 days---Show cause notice was disposed of accordingly. Citation Name: 2025 CLD 1478 COMPETITION COMMISSION OF PAKISTANBookmark this Case IN THE MATTER OF SHOW CAUSE NOTICE ISSUED TO MESSRS AL-GHAZI TRACTOR LIMITED REGARDING DECEPTIVE MARKETING PRACTICES VS S. 10(2)(b)---Deceptive marketing practice---Determination---Ordinary Consumer Test---Scope---Standard for evaluating consumer behavior and expectations must be based on the perspective of an "ordinary consumer"---Courts often consider what an ordinary person in general public would think or how they would act in a given situation. Citation Name: 2025 CLD 1478 COMPETITION COMMISSION OF PAKISTANBookmark this Case IN THE MATTER OF SHOW CAUSE NOTICE ISSUED TO MESSRS AL-GHAZI TRACTOR LIMITED REGARDING DECEPTIVE MARKETING PRACTICES VS S.10(2)(b)---Deceptive marketing practice---Determination---Lack of Reasonable Basis Test---Scope---Distribution of false and misleading information to consumer, under S. 10(2)(b) of Competition Act, 2010 must lack reasonable basis---Any information that has reasonable basis would not amount to "false" or "misleading" information. Citation Name: 2025 CLD 1478 COMPETITION COMMISSION OF PAKISTANBookmark this Case IN THE MATTER OF SHOW CAUSE NOTICE ISSUED TO MESSRS AL-GHAZI TRACTOR LIMITED REGARDING DECEPTIVE MARKETING PRACTICES VS Ss. 30 & 37---Contravention---Inquiries and studies---Initiation of proceedings---Scope---Provision of S. 30 of Competition Act, 2010 is independent and not contingent on S. 37 of Competition Act, 2010---Inquiry is not a necessary prerequisite to issuance of show cause notice and initiation of proceedings under S. 30 of Competition Act, 2010---Provision of S. 37 of Competition Act, 2010 cannot be construed in any way to restrict scope and very purpose of Competition Act, 2010 or to pose constraints on the powers of the Commission by creating procedural hurdles.

IN THE MATTER OF SHOW CAUSE NOTICE ISSUED TO MESSRS AL-GHAZI TRACTOR LIMITED REGARDING DECEPTIVE MARKETING PRACTICES vs S. 10 (2)(b) — 2025 CLD 1478 COMPETITION COMMISSION OF PAKISTAN

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