The Competition Commission of Pakistan (CCP) has levied a fine of Rs. 5 million on Diamond Paint Industries (Pvt) Ltd for engaging in deceptive marketing practices related to its product, ‘Durasilk.’ The decision comes in response to a complaint lodged by Nippon Paint Pakistan (Pvt) Ltd, which raised concerns over Diamond Paint’s television marketing campaign.
The CCP bench, chaired by Dr. Kabir Ahmed Sidhu and Member Salman Amin, delivered the ruling after an investigation revealed that Diamond Paint failed to fully disclose crucial information in its television commercials (TVCs). Despite including disclaimers on product packaging and shade cards, Diamond Paint neglected to inform consumers about the presence and value of redeemable tokens in its paint buckets within its TVCs. This omission was found to exploit consumer rights by making partial disclosures.
This marks the third time that concerns have been raised regarding the omission of material information in TVCs by paint manufacturers. The CCP’s Paint Order 2012 explicitly mandates that the inclusion of tokens without proper disclosure is deemed to lack a reasonable basis concerning prices, thus falling under Section 10(2)(b) of the Competition Act. To ensure compliance, the CCP conducted a study across the entire paint industry.
Transparency in advertising is essential for informed consumer decisions, as TVCs often serve as the initial point of contact between consumers and products. The CCP bench underscored the importance of proper disclosure of redeemable tokens, emphasizing that marketing techniques involving coupons significantly influence consumer purchasing decisions.
The order concluded that Diamond Paint Industries failed to provide consumers with all necessary information to make informed purchasing decisions, thereby violating the earlier directives on the use of redeemable tokens and contravening Section 10 of the CCP Act.
This ruling reaffirms the CCP’s commitment to ensuring fair marketing practices and protecting consumers from misleading information, safeguarding the competitive landscape for all market participants.
