CCP im­poses fine on dairy com­pa­nies for vi­o­la­tion of com­pe­ti­tion act

Pakistan Today (Karachi) - - BUSINESS -

The Com­pe­ti­tion Com­mis­sion of Pakistan (CCP) has passed an or­der im­pos­ing fines of Rs 62.29 mil­lion on En­gro Foods Limited (EFL), Rs 2 mil­lion on Noon Pakistan Limited (NPL), and Rs 500,000 on Shakar­ganj Foods Prod­ucts Limited (SFP) for vi­o­lat­ing Sec­tion 10 of the Com­pe­ti­tion Act, 2010.

The or­der has been passed by the CCP’s bench com­pris­ing Chair­per­son Vadiyya Khalil, mem­bers Dr Shahzad An­sar and Ikram-ul-Haq Qureshi. The or­der dis­poses off the show cause no­tices is­sued to th­ese com­pa­nies af­ter an in­quiry con­ducted by CCP found that the afore­men­tioned com­pa­nies were prima fa­cie de­ceiv­ing con­sumers by mar­ket­ing and sell­ing tea whiten­ers and dairy drinks in­clud­ing SFP's prod­uct 'Qu­drat' (liq­uid tea whitener), NPL's prod­uct 'Dairy Rozana' (dairy drink) and EFL's prod­uct 'Dairy Omung' (dairy drink) as milk.

The or­der found that EFL in its mar­ket­ing cam­paign for its prod­uct ‘Dairy Omung’ , par­tic­u­larly the tele­vi­sion com­mer­cial, gave the net im­pres­sion that ‘Omung’ is milk, and not a dairy drink, while the com­pany’s web­site termed ‘Omung’ as an al­ter­nate to loose milk, thereby de­ceiv­ing the un­sus­pect­ing con­sumer. The or­der fur­ther noted that the pack­ag­ing and la­bel­ing of NPL’s prod­uct ‘Dairy Rozana’ gave a gen­eral net im­pres­sion that the prod­uct is milk, not a dairy drink thus de­ceiv­ing the con­sumers about the prod­uct.

Re­gard­ing SFPL’s prod­uct ‘Qu­drat’, the or­der found that the la­bel­ing on the pack­ag­ing was de­cep­tive in the ab­sence of a proper and suf­fi­cient dis­clo­sure about the prod­uct.

CCP’s or­der states that the when ma­te­rial in­for­ma­tion per­tain­ing to prod­ucts or ser­vices is in­ac­cu­rate or in­com­plete, it is likely to mis­lead con­sumers and af­fect com­peti­tors, in vi­o­la­tion of Sec­tion 10 of the Com­pe­ti­tion Act.

The penal­ties have been im­posed on the com­pa­nies rel­a­tive to the sever­ity of the vi­o­la­tions and their likely im­pact on com­pe­ti­tion in the mar­ket. Fur­ther­more, the com­pa­nies have been warned not to vi­o­late the pro­vi­sions of com­pe­ti­tion law in the fu­ture.

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