ISLAMABAD: The Competition Commission of Pakistan (CCP) on Wednesday issued show-cause notices to 18 electric cable manufacturers for indulging in deceptive marketing – a prima facie violation of Section 10 of the Act.
An inquiry conducted by the CCP revealed that certain companies were inserting cash and cash coupons of various denominations in the packaging of wire cable bundles, but the packaging and other promotional material for these products neither indicated the presence of coupons nor reflected the value being charged from consumers in the final price, a statement issued by the commission said.
The practice is typically adopted by the companies to attract the contractors/electricians hired by consumers for their work.
The non-disclosure of such cash/cash coupons constitutes as deception since consumers have to pay the price for something they are not aware of.
Moreover, through such practices, the companies —in order to increase the sale of their products — may also compromise on the quality of electric cable to offset the cost of putting free coupons/cash.
Under CCP guidelines, omission of material information about products misleads consumers and could affect their purchase decision, but also gives an undue competitive edge to the companies over their competitors.
Based on the above findings, the CCP inquiry recommended show-cause notices to Dawn Cables, GM Cables and Pipes, Fast Cables, Hitech English Cables, Pak Muzaffar Cable, Alfa Plus Wire Cable, Hi Ace English Cable, Gold Royal Cable, Zafar Cable, Nation Cable, Puller Cable, Welcome Cables, Dewan Cables, E-Flux Cables, Hero Cable, Falcon Cables, Lear Cables and Rana Cables.
The companies have been directed by the commission to file their written reply within 14 days.
Courtesy : Dawn News