The Competition Commission of Pakistan (CCP) has launched an investigation against the entire paint industry to check whether 15 manufacturers are making false/misleading claims of best paint/emulsion to commit deceptive marketing practices.
The investigation has been started after the CCP Bench found that M/s. Berger Paints Pakistan Limited is making false claims of `No.1 Emulsion in Pakistan’, without any independent study/research or report.
However, no penalty was imposed on the said manufacturer due to compliance by the unit in line with the CCP’s directives.
In this regard, a two-member CCP Bench issued a detailed order.
“The CCP bench observed that any alleged practice of a similar nature in the paint market, in a form or manner which is misleading or deceptive, needs to be stopped and/or rectified forthwith by all undertakings concerned”, CCP order.
It is worth mentioning that in the past the commission had conducted a survey of the paint industry and declared that all the paint manufacturers have now fully complied with the commission’s directions to disclose the presence/insertion of tokens in their paint products.
According to a new CCP order issued in Nov 2022, the CCP has disposed of proceedings initiated pursuant to Show Cause Notice No.11/22 dated April, 2022 (SCN) issued against M/s. Berger Paints Pakistan Limited (Respondent) for prima facie violation of Section 10(1) read with Section 10(2)(a) and 10(2)(b) of the Competition Act, 2010 (Act).
The SCN was...
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