CCP lays down strict, far-reaching principles governing disclosure in advertising

ISLAMABAD: The Competition Commission of Pakistan (CCP) has laid down strict and far-reaching principles governing disclosure in advertising, reinforcing that businesses must clearly present product information to prohibit the use of misleading representations that distort consumer choice.

In a detailed order issued on Friday for undertakings, the Commission emphasized that material features of a product must be disclosed in a manner easily understood by an ordinary consumer, warning that even partial truths or omissions can amount to deceptive marketing.

The Commission further held that remaining silent or failing to clarify misleading impressions created through advertisements may itself constitute deception, particularly where such silence results in a false or distorted consumer perception.

Building on its jurisprudence, CCP reiterated that disclaimers and disclosures must be “clear and conspicuous” and placed as close as possible to the advertising claim, ensuring that consumers are not misled by prominent claims overshadowing hidden qualifications.

Importantly, the Commission categorically discouraged the use of fine print, noting that disclaimers that are difficult to read or that obscure critical information are unacceptable, and that there should be no ambiguity in consumer communication.

The order further elaborated that disclosures must be prominently visible, adequately presented, appropriately placed, in a clear and legible font, distinguishable from surrounding content, and in the same language as the advertisement.

Applying these principles, the Commission found that disclosures placed inconspicuously — such as on the extreme corner of product packaging — fail to meet legal requirements and are deceptive in themselves, as they do not effectively communicate the true nature of the product to consumers.

The Commission also rejected the defence that misleading claims made by third-party sellers on digital platforms absolve manufacturers of responsibility, observing that companies benefit commercially from such claims and must take proactive steps to prevent or correct them.

These principles were recently applied in a high-profile enforcement action involving the marketing of ice cream and frozen dessert products, where the Commission found that consumers were misled through advertising that created a false impression regarding the true nature and composition of the products.

Following a formal inquiry under the Competition Act, the Commission concluded that the undertakings had disseminated false and misleading information by portraying frozen dessert products as ice cream, thereby violating the law on deceptive marketing practices.

The Commission directed the undertakings to immediately cease such misleading representations, withdraw deceptive advertisements across all platforms, and ensure that all future marketing communications carry clear, accurate, and transparent disclosures reflecting the true nature of the products.

The appellate forum subsequently upheld the Commission’s findings, affirming that the conduct amounted to deceptive marketing under the law.

The successful enforcement of the order, including recovery of financial penalties, marks a significant step in reinforcing regulatory discipline and underscores the Commission’s commitment to truthful advertising and consumer protection in Pakistan’s food sector.

The order sends a strong regulatory signal that businesses cannot rely on fine print, technical disclaimers, or third-party platforms to shield misleading claims. That responsibility for truthful communication rests squarely with the undertaking.

By reinforcing strict disclosure standards and actively enforcing them, CCP is positioning itself as a modern competition authority focused on consumer protection, transparency, and fair market practices, in line with international best practices.

Copyright Business Recorder, 2026