ISLAMABAD, Jan 14: The Competition Commission of Pakistan (CCP) on Friday directed paint companies to modify advertisements and packaging to highlight presence of tokens in paint buckets.

Earlier, showcause notices were issued to 16 paint companies for deceptive marketing practices, violating Section 10 of the Competition Act, 2010.

The order, issued by a CCP bench, comprising its chairperson Rahat Kaunain Hassan and members Dr Shahzad Ansar and Vaddiya Khalil, directed the paint companies to modify all advertisements and promotional material to disclose presence and price of the token along with its value on each pack within a period of 60 days, starting from Jan 13, 2012.

The Consumer Association of Pakistan had complained that paint manufacturers were placing redeemable coupons in paint packs without adequate disclosures, leaving consumers largely unaware of this practice.

The probe and the hearings led to reveal that this is an industrywide practice. The CCP found that the value of tokens ranges from approximately Rs50 to Rs500 varying with the size of the paint pack and depending on the brand.

Usually painters take out tokens concealed at the bottom of containers.

The companies have been directed to file a compliance report with respect to implementation of the directions by March 30.

After the showcause notices, the paint companies had all assured the CCP bench to start disclosing the presence of token in paint packs to consumers and have shown their willingness to comply with the directions of CCP.