CCP imposes Rs10m penalty on company

The Competition Commission of Pakistan has fined a company Rs10 million after finding that its advertising comparison with a rival multinational product lacked support. Business Recorder reported that the detailed order was issued by a bench led by Chairman Farid Ahmad Tarar, with Member Bushra Naz Malik sitting alongside him.

Under the ruling, comparative advertising is not banned outright, but firms must be able to back claims about a competitor's quality or performance with credible evidence. Comparisons that lack sound grounds can be classed as misleading promotion under Section 10 of the 2010 Competition Act. The commission listed four elements needed to establish a violation: a false or misleading representation, a comparison, a link to goods, and use within advertising.

The commission concluded that the company gave no reasonable grounds for its comparison, and it noted that the company did not challenge an outside laboratory assessment supplied by the other firm, which found the two products comparable in quality. The regulator also treated a demonstration given to distribution partners rather than end consumers as advertising, dismissing the company's objection.