Law: Competition Ordinance, 2009

Section:

Competition Ordinance (XLVI of 2009)--Ss. 10, 30 & 38---Deceptive marketing practices-Proceedings against---Imposition of penalty---Competition Commission, took suo motu notice of the advertisements of the undertaking wherein it had been advertised that the product of the undertaking was worlds No.1 antidandruff Shampoo suggesting that its use would render the hair "100% dandruff free"---Undertakings claim of being worlds No.1 anti-dandruff Shampoo was reasonably substantiated on the basis of the report of, the company; submission made on behalf of the undertaking, in circumstances, had some merit, however, with regard to claim of the undertaking "100% dandruff free", message and the claim from the original advertisement was simple and clear and an ordinary consumer was likely to infer only that the product of the undertaking would render the hair "100% dandruff free"---Claim of undertaking with respect to 100% dandruff free was challenged by a consumer in United Kingdom before the Advertising Standard Agency which vide its order held that advertisements of the undertaking were misleading---Competition Commission of Hungary, also declared advertisement to be misleading and deceptive for the reason that undertaking was not able to show scientific evidence in proof of the claim---Claim of the undertaking in the advertisement of the product suggesting that the use of said product would render hair 100% dandruff free was deceptive and was tantamount to disseminating misleading information in terms of clause (b) of subsection (2) of S.10 of the Competition Ordinance, 2009 as it lacked reasonable basis regarding the character, suitability of use and/or properties of the product in question---Undertaking, in circumstances, was directed to comply with the Commissions directions within a period of two weeks; to stop advertising in its current form in all segments of media and in future the undertaking would not use the phrase 100% dandruff free in their advertisement of the product, unless it was properly substantiated by a cogent evidence providing it a reasonable basis for such claim; to modify its claim of 100% dandruff free to include significant conditions that…

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