Law: Competition Act, 2010

Section: 10

Competition Act (XIX of 2010)--- ----S. 10---Deceptive marketing practices---Information capable of harming business interests of another undertaking---Information lacking reasonable basis---Scope---Complainant complained that the respondent illegally capitalized on the COVID-19 pandemic by falsely advertising certain paint products to offer COVID-19 protection---Respondent contended that it manufactured an anti-bacterial paint which contained a substance called Benzalkonium Chloride (BKC) and that it had already stopped the alleged advertisements---Validity---Laboratory reports only pertained to the efficacy of BKC against bacteria and microbes but not against viruses, particularly COVID-19---Marketing practice of the respondent was to the prejudice and injury, not only of the consumers, but, also to other undertakings---Respondent had violated S. 10(2)(b) along with S. 10(2)(a) of the Competition Act, 2010---Respondent had contended that the sales of the product were minimal, however, record revealed that a significant portion of such sales was made to a hospital on 50% discount-purportedly as a Corporate Social Responsibility---Other studies showed BKC to have toxic elements that might cause respiratory issues---Respondent was also a major local player in the industry---Competition Commission imposed a minimal penalty, directed the respondent to withdraw any or all the batches of the products and inform the hospital regarding inefficacy of the claims---Show cause notice was disposed of accordingly. Show Cause Notice issued to Messrs Reckitt Benckiser Pakistan Ltd. on the Complaint filed by Messrs Square Distribution and Marketing System (Pvt.) Ltd dated 9 February 2021 (the “Strepsil Order”) rel. ORDER 1. This order shall dispose of proceedings arising out of Show Cause Notice No. 1/2022 dated January 13, 2022 (hereinafter the ‘SCN’) issued to Messrs Nelson Paints Industries (Pvt.) Limited (hereinafter the ‘Respondent’) for prima facie violation of section 10 of the Competition Act, 2010 (hereinafter the ‘Act’). 2. The Competition Commission of Pakistan (hereinafter the ‘Commission’) received a complaint filed by Messrs Nippon Paints Pakistan (Pvt.) Limited…

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