CCP warns retailers against ‘deceptive marketing’
ISLAMABAD : In a first of its kind advisory to commercial outlets, the Competition Commission of Pakistan (CCP) has warned shoe and clothing brands offering discounts to ensure complete and visible disclosures regarding actual and discounted prices.
“Brands violating this directive may face enforcement actions by the CCP,” the advisory issued on Saturday said.
It added that during the ongoing seasonal surge in discounts, particularly within clothing and shoe brands, the CCP uncovered instances of deceptive marketing practices.
Preliminary investigations by the CCP indicate that such practices violate Section 10 of the Competition Act, 2010, constituting deceptive marketing.
The survey conducted by the CCP teams and the preliminary probe identified 27 brands offering ‘flat’ discounts on their products.
The CCP noticed, however, that the flat discount did not apply to all items and the discount advertised outside the shop was higher than the actual sale prices inside.
The disclaimer about ‘Terms & Conditions’ had an illegible font size. In numerous cases, ‘Terms & Conditions’ were not even mentioned at all.
Meanwhile, a senior official of the Commission gave an example that certain offers, like “Flat 50 per cent plus 20 per cent on bank cards” had differing terms for online and retail purchases, leading to confusion and potentially misleading consumers into uninformed purchases.
“These discrepancies were observed in approximately 96 per cent of the outlets surveyed,” the CCP said, adding that the lack of disclosure containing essential information hampers the ability of consumers to make informed decisions.
The CCP has already issued “Guidelines on Section 10: Deceptive Marketing Practices”, which prohibit ‘Bait and Switch Advertising’ — a practice of advertising a product at a low price, but charging a higher price at the point of purchase.
These guidelines emphasise the responsibility of business entities to ensure a clear disclosure of terms and conditions across all media to avoid creating a false impression about the goods on offer.
Fine print disclaimers and qualifications that are difficult to read or to hide important information are strongly discouraged, the CCP said.
The commission advised consumers to exercise vigilance and thoroughly review the terms and conditions of discounts and sale offers to avoid falling victim to deceptive marketing practices. It asked consumers to lodge complaints at its website.
Published in Dawn, December 31st, 2023
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