The Competition Commission of Pakistan (CCP) has imposed a PKR 5 million penalty on M/s Diamond Paint Industries (Pvt) Ltd. for breaching Section 10 of the Competition Act, 2010, which addresses deceptive marketing practices.
A CCP bench, chaired by Dr. Kabir Ahmed Sidhu and including Member Mr. Salman Amin, issued this ruling following a complaint by Nippon Paint Pakistan (Pvt) Ltd. The complaint concerned Diamond Paint’s ‘Durasilk’ marketing campaign aired on various television channels.
This case marks the third instance of concerns being raised about the omission of essential information in television commercials (TVCs) by paint manufacturers. The investigation revealed that, despite including disclaimers on its packaging and shade cards, Diamond Paint failed to disclose the presence and value of redeemable tokens in its TVCs, thereby misleading consumers with incomplete information on its packaging.
Transparency in advertising is vital for enabling informed consumer choices, as TVCs are often the initial interaction between a consumer and a product. The CCP’s Paint Order 2012 explicitly requires that the inclusion of tokens must be fully disclosed to avoid misleading price representations, as stipulated in Section 10(2)(b) of the Act. Additionally, the CCP conducted a study across the paint industry to ensure compliance with the 2012 order.
The CCP bench highlighted that accurate disclosure of tokens is essential for consumers. Marketing strategies involving redeemable coupons significantly influence purchasing decisions. The ruling determined that M/s Diamond Paint Limited failed to provide consumers with necessary information for making informed decisions, thereby violating previous directives on redeemable tokens and Section 10 of the CCP Act.
