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ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued notices to 20 brands regarding retailers’ deceptive advertising during the “end of season sales”, defining it as a tactic to mislead buyers.
The commission took action against brands for advertising discounts as “up to a percentage” during the end-of-season sale, seeking clarification on their potential misleading discounts.
Issuing notices to 20 brands, the CCP has said that such unspecified discount offers are akin to ‘bait and switch advertising’ and the commission has defined it as a tactic to mislead buyers.
As per CCP inquiry, the seller advertised an appealing but spurious offer to sell a product or service that the seller does not intend to sell. Instead, the seller offers an unwanted alternative which is prohibited under Section 10 of the Act as Deceptive Marketing Practices.
Market Intelligence Unit of Fair Trade of the CCP conducted a random survey in the twin cities and identified various brands offering discounts “up to some percentage” on their products.
The survey revealed that maximum (upper limit) discount was being offered on a small collection of least attractive articles and the most popular and frequently purchased items were available with minimal or no discount.
Consequently, a clear gap was observed between the advertised discounts and the real offers, compelling the customers to ask multiple questions to determine the actual discounts available on their chosen items.
Some of the brands were, however, offering flat discounts or concessions (discounts up to some upper limit) with adequate disclosures/disclaimers i.e. on the entire/limited or specified stock which is highly appreciated by the CCP.
According to the CCP inquiry report, the Commission advises various consumer brands offering discounts to preclude distributing any misleading information and ensure clear and adequate disclosures regarding actual and discounted prices with the details of the stock on offer with flat or differential discounts.
Undertakings, Brands, and outlets violating this directive may face enforcement action by the CCP under Section 10 of the Competition Act, 2010,” the CCP said in a statement.
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