CCP initiates action against companies for marketing tea whiteners as milk
KARACHI: The Competition Commission of Pakistan (CCP) has issued Show Cause Notices to M/s Shakarganj Foods Products Limited, M/s Haleeb Foods Limited, M/s Noon Pakistan Limited and M/s Engro Foods Limited for alleged violation of Section 10 of the Competition Act, 2010 by advertising tea whiteners as milk.
CCP conducted an enquiry of the various undertakings for marketing their products of dairy drinks and tea whiteners as milk thus misleading the consumers. In its enquiry, the CCP evaluated the packaging, marketing practices including the television commercials & website disclosure, and other marketing material of the abovementioned products, to see whether the companies violated Section 10 of the Competition Act.
The enquiry found that the undertakings were involved in distributing false and misleading information that is capable of harming the consumers’ interests as well as the business interest of other undertakings in terms of the Competition Act.
The enquiry report recommended the initiation of show cause notes to Shakarganj Foods Products Limited for their product 'Qudrat' (liquid tea whitener), Haleeb Foods Limited for their product 'All Max' (dairy drink) and 'Dairy Queen' (liquid tea whitener), Noon Pakistan Limited for their product 'Dairy Rozana' (dairy drink) and Engro Foods Limited for their product 'Dairy Omung' (dairy drink), for the prima facie violation of Section 10 of the Competition Act.
Deceptive marketing practices have a direct impact on the public at large. Competition Law requires the undertakings to disclose correct information regarding their product to the consumers as false and misleading advertisements could induce the consumers to purchase the product thus giving the companies a competitive edge over their competitors.