ISLAMABAD: The Competition Commission of Pakistan (CCP) has withdrawn show-cause notices and inquiry against two companies, engaged in selling of petroleum lubricants, with the ruling that the puffery cannot be investigated under the Competition Act 2010, and the cases do not fall within the category of deceptive marketing practices.
According to the enquiry report issued by the CCP here on Thursday, the CCP concluded that the cases against the respondent companies were not made out under Section 10 of the Competition Act, and alleged claims fall under the category of puffery.
The inquiry report revealed that the complainant company was engaged in the manufacturing and supplying of lubricating oils for automobiles, and off highway engines. The two respondent companies were stated to have been operating in the same market, and selling their lubricants under a different name.
It was alleged that the two respondent companies had made outrageous claims in respect to quality, efficacy and fitness of the lubricants through their commercial campaigns. This order disposes of proceeding arising out of show cause notices (SCNs) issued to two companies for prima lack of violation of Section 10 of the Competition Act 2010, (Act).
In the instant matter, the complainant company alleged that product superiority claims made by the respondent companies through advertisements and TV commercials are false, misleading. unsubstantiated and deceptive in nature, capable of harming consumers, as well as business interests of competing undertakings.
The complainant has also alleged the respondents to have made various statements in their advertisements, which created an unsubstantiated impression of comparison between competing products in the market. The CCP is of the considered view that the defense of puffery is applicable in the instant case and alleged claims do fall within the category of puffery instead of factual representation.
The CCP is of the view that mere use of the words "best" in an advertised statement, is not sufficient to claim, it a deceptive advertisement, since it is based on subjective reason, unverifiable and incapable of substantiation, the CCP added. The CCP concluded that the enquiry report has been set aside and the show case notices have been disposed of, the CCP said.
Copyright Business Recorder, 2020
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