The Competition Commission of Pakistan (CCP) has imposed a fine of PKR 5 million on M/s Diamond Paint Industries (Pvt) Ltd. for breaching Section 10 of the Competition Act, 2010.
This section specifically prohibits deceptive marketing practices, and the company was found to be in violation of these regulations.
The CCP stated that a bench, chaired by Dr. Kabir Ahmed Sidhu along with Member Mr. Salman Amin, issued an order following a complaint by Nippon Paint Pakistan (Pvt) Ltd. The complaint was against Diamond Paint’s marketing campaign for its product ‘Durasilk,’ which was aired on multiple television channels.
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The investigation revealed that Diamond Paint failed to disclose the presence and value of redeemable tokens in its TV ads, despite including disclaimers on packaging, misleading consumers with partial information.
Transparency in advertising is essential for informed consumer decisions, as TV commercials are often the initial interaction between consumers and products. The CCP’s Paint Order 2012 requires full disclosure of any tokens included with a product. Failure to do so, as with Diamond Paint, violates Section 10(2)(b) of the Competition Act.
The order found that M/s Diamond Paint Limited did not provide all necessary information for consumers to make informed choices, violating both previous directives on redeemable tokens and Section 10 of the CCP Act.
