Law: Competition Act, 2010

Section: 10

Competition Ordinance (XVI of 2010)---Ss. 10 & 37---Deceptive marketing practice---Distribution of fake or misleading information to consumers---Undertaking was in the business of hair fall solution product called "Remaine"---Competition Commission of Pakistan received information regarding couple of advertisements of said product in which the undertaking had claimed that use of "Remaine" for 15 or even 10 days would stop hair from falling by 100 per cent, regardless of the cause of hair fall---Advertisements, prima facie, being in violation of S.10 of Competition Ordinance, 2010, Office of Fair Trade took cognizance on its own and recommended the Commission to initiate an enquiry under S.37(1) of Competition Ordinance, 2010---Enquiry revealed that supporting documents produced by the undertaking did not suffice in forming reasonable basis of the absolute claims made in the advertisements---Material submitted, clearly did not support claims made in the advertisements that "100 % stop in hair fall in 8-15 days" and lacked reasonable basis---Representatives of the undertaking, in response to show-cause notice, expressed their inclination to amend the said advertisement and sought guidance from the Commission so that the advertisement would be in consonance with S.10 of Competition Ordinance, 2010---Undertaking was directed to remove absolute claims lacking reasonable basis, entirely from their packages as well as their advertisements which was rectified to the effect that "depending on the severity of the problem by applying twice a day, the user will experience a decrease in hair fall, the result would be experienced by the user in 8-15 days"---Commission appreciated the co-operation extended in ensuring compliance with the Competition Ordinance, 2010---Taking lenient view, no penalty was imposed and undertaking was reprimanded to ensure more responsible behaviour in future with respect to marketing of the products and making any claim in respect thereof. ORDER 1. This Order shall dispose of the proceedings pursuant to Show Cause Notice No.1 of 2011 dated January 12, 2011 (hereinafter "SCN") issued to Messrs RITS Incorporation, for prima facie violation of…

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