CCP Urges Clarity in Discounts: Brands Warned Against Deceptive Marketing Practices
ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued guidance to clothing and shoe brands, urging them to provide clear and complete disclosures regarding actual and discounted prices during promotional discounts.
During the ongoing seasonal surge in discounts, particularly within clothing and shoe brands, CCP uncovered instances of deceptive marketing practices. Preliminary investigations indicate that such practices may violate Section 10 of the Competition Act, 2010, constituting deceptive marketing.
The advisory emphasizes transparency and warns that brands found violating these directives may face enforcement actions under Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices.
The CCP’s survey and preliminary probe identified 27 brands offering ‘flat’ discounts on their products. However, CCP noticed that the ‘Flat discount’ didn’t apply to all items.
The discount advertised outside the shop was higher than the actual sale prices inside. The disclaimer about ‘Terms & Conditions’ had an illegible font size. In numerous cases, ‘Terms & Conditions’ weren’t mentioned at all.
The CCP’s preliminary investigations revealed instances of deceptive advertising, with discrepancies in ‘flat’ discount offers, illegible font sizes for disclaimers, and differing terms for online and retail purchases causing confusion among consumers.
The CCP has already issued “Guidelines on Section 10: Deceptive Marketing Practices,” which also prohibit ‘Bait and Switch Advertising’. It is the act of advertising a product at a low price but charging a higher price at the point of purchase.
These guidelines emphasize the responsibility of undertakings to ensure clear disclosure of terms and conditions across all media to avoid creating false impressions about the goods on offer. Fine print disclaimers and qualifications that are difficult to read or hide important information are strongly discouraged.
The CCP encourages consumers to be vigilant, review terms and conditions carefully, and aims to ensure fair competition and protect consumers from deceptive marketing.
(Source: Dawn news)