Law: Competition Act, 2010

Section: 10

(a) Competition Act (XIX of 2010)---Ss. 10 & 37---Deceptive marketing practice---Pursuant to a complaint, show-cause notice was issued against the respondent company alleging that the company was making a claim in Marketing Campaign and advertisements to be "No.1 in Pakistan" with respect to all of its products under the brand 'Baygon'---Contentions were that on the basis of the Audit Retail Survey; the market share of the respondent's said products was 5%; that the claim in respondent's Marketing Campaign lacked a reasonable basis, related to character, suitability for use; or quality of goods in violation of S.10(2)(b) of the Competition Act, 2010; and that said Marketing Campaign was capable of harming the business interest of the complainant---Claim 'No.1 in Pakistan', was not a general assertion, but was a quantifiable and specific statement, which described specific character and it could not be accepted that either claim 'No.1' or 'Pakistan in any manner conveyed a general impression towards the consumers---When the logo of 'brand of the year' was placed with the claim 'No.1 in Pakistan', every ordinary consumer would prima facie believe on the statement and was likely to be misled by such marketing, particularly when Dengue fever was becoming an epidemic and the consumers were looking for the best protection against mosquitos---Counsel for the respondent submitted that even before the Enquiry Committee, they had submitted that they were willing to modify/amend their claim and advertisement in the light of the direction of the Competition Commission---Counsel also undertook that marketing campaign in question, would be withdrawn---In view of the prima facie findings of the enquiry report, which had not been rebutted either orally or by production of any documents/evidence, claim 'No.1 in Pakistan' lacked 'reasonable basis' and was in violation of S.10 of Competition Act, 2010---In the light of the prevailing situation when fight against 'Dengue' fever was going on vigorously, there was merit in the claim that such campaign was capable of harming the business interest in the competing undertakings, including the complainant---Respondent was…

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