CCP Issues Notices to 20 Brands Over Misleading Discount Practices
The Competition Commission of Pakistan (CCP) has taken action against retailers advertising vague discount offers, such as “up to a percentage” during their “End of Season Sales.” Notices have been sent to 20 brands, requiring them to clarify their potentially deceptive marketing practices.
The CCP has identified these unspecified discount offers as a form of ‘Bait and Switch Advertising,’ a deceptive tactic where sellers lure customers with appealing but misleading deals. Often, the advertised product or service is not actually available, and instead, customers are offered less desirable alternatives. This practice is prohibited under Section 10 of the Competition Act, 2010, which addresses Deceptive Marketing Practices.
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A random survey conducted by the CCP’s Market Intelligence Unit and the Office of Fair Trade in Islamabad and Rawalpindi revealed that many brands were promoting discounts of “up to a certain percentage.” However, the maximum discount was only applied to a limited selection of less popular items, while the more sought-after products had little to no discount. This discrepancy between advertised discounts and actual offers created confusion for consumers, who had to inquire multiple times to understand the true discounts available on desired items.
The CCP acknowledged that some brands provided clear and adequate disclosures about flat discounts or varying discounts on specific stock, which was appreciated. The Commission advises all consumer brands to avoid distributing misleading information and to ensure transparent communication about actual and discounted prices, along with details of the stock on offer.
Enforcement and Consumer Advisory
Brands and outlets violating these guidelines may face enforcement action under Section 10 of the Competition Act, 2010. Consumers are also urged to remain vigilant and verify the authenticity of discounts to avoid being misled by deceptive sales tactics.
The CCP remains dedicated to upholding the principles of free competition, improving economic efficiency, and protecting consumers from anti-competitive behavior. The Commission continues to monitor the market to prevent unfair practices and ensure a level playing field for all.
