The Competition Commission of Pakistan (CCP) has issued notices to 20 brands for alleged deceptive marketing practices, expanding its scrutiny of unrealistic yet appealing sale offers to additional brands.
The commission has targeted retailers advertising discounts as “up to a percentage” during “end of season sales,” seeking clarification on these potentially misleading discount practices. The CCP views such unspecified discount offers as a form of ‘bait and switch advertising,’ which it defines as a tactic to mislead consumers.
In these situations, a seller promotes an attractive but false offer to sell a product or service that they do not intend to sell.
An initial CCP inquiry revealed that sellers often provide unwanted alternatives, which is prohibited under Section 10 of the Competition Act 2010 due to its deceptive marketing implications. The Market Intelligence Unit of the Fair Trade of the CCP conducted a random survey in the twin cities, identifying various brands offering discounts “up to some percentage” on their products.
Additionally, a recent survey highlighted the practices surrounding discount offerings in the market. It found that significant discounts were primarily applied to a limited range of less desirable products, while popular and frequently purchased items had minimal or no discounts.
This created a noticeable gap between advertised discounts and actual offers, leading customers to ask numerous questions to clarify the discounts on their chosen items.
Conversely, some brands offered clear flat discounts or concessions, providing proper disclosures on whether the discounts applied to all stock or specific items. The CCP appreciated this transparency.
The commission advises consumer brands offering discounts to avoid misleading information and ensure clear, adequate disclosures about actual prices, discounted prices, and stock details for both flat and variable discounts.
Brands and outlets that fail to comply with this directive may face enforcement action by the CCP under Section 10 of the Competition Act, 2010.