The Competition Commission of Pakistan is authorized under the Competition Act to ensure free competition in all spheres of commercial and economic activities to enhance economic efficiency and to protect consumers from anti-competitive practices including wrong marketing practices. In this regard, the Commission has issued Show-Cause notices to four companies including Unilever Pakistan for prima facie violation of Section 10 of the Competition Act, 2010.
Unilever Pakistan was served with the show-cause notice for prima facie violation of section 10. The action was taken on the complaint of Reckitt Benckiser Pakistan Limited that Unilever was distributing false/misleading information by making absolute claims regarding its products, lifebuoy, and hand wash.
After an inquiry, it was concluded that Unilever Pakistan Limited was harming other undertaking’s business interests and misleading consumers by absolute claims regarding the two products. For example, the claims were: “100% guaranteed protection from germ”, “World’s No.1 germs protection soap”, 99% germ protection in 10 seconds”.
The other case of prima facie wrong marketing practice was by Pakistan firms, Kennol Petroleum (PVT) Limited, Dewan Oil Store, and Japan Lube Petroleum for copying the packaging of the product of KENNOL Performance Oil. The complaint against these companies was forwarded by a French-based company, KENNOL Performance Oil.
The complainant stated that its product “Kennol” is registered in France and with the Intellectual Property Organization (IPO) in Pakistan and it has not authorized any other firm to use it in Pakistan. The kennol Petroleum, Dewan Store, and Japan Lube are misleading consumers about their products.
On an inquiry by the Competition Commission of Pakistan, it was concluded that Kennol Petroleum, Dewan Stores and japan Lube were engaged in copycat packaging of KENNOL Performance Oil’s product to deceive customers and harm the interests of KENNOL Performance Oil as the trademark belongs to KENNOL Performance Oil. The CCP issued show-cause notices to Kenno Petroleum, Dewan Stores, and Japan Lube and directed them to submit the replies.