| Case ID |
2bd5a362-118a-48a1-bf9a-5b35c5febfca |
| Body |
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| Case Number |
File No. 391 / Nelson Paint / OFT / CCP / 2021 |
| Decision Date |
Dec 01, 2022 |
| Hearing Date |
Mar 29, 2022 |
| Decision |
The Competition Commission of Pakistan found that Messrs Nelson Paint Industries (Pvt.) Limited violated sections 10(2)(a) and 10(2)(b) of the Competition Act, 2010 by disseminating false and misleading information regarding their paint products' efficacy against COVID-19. The Commission imposed a minimal penalty of Rs. 1 million and directed the respondent to withdraw all batches of the products still available in the market. Additionally, they were ordered to inform relevant hospitals and distributors of the ineffectiveness of their claims. The Commission emphasized the necessity for truthful advertising, especially in health-related claims, and the importance of compliance with established guidelines. |
| Summary |
In the case concerning Nelson Paint Industries (Pvt.) Limited, the Competition Commission of Pakistan addressed allegations of deceptive marketing practices under the Competition Act, 2010. The complainant, Nippon Paint Pakistan, accused Nelson Paint of falsely advertising products as offering protection against COVID-19. The Commission found that the respondent's claims were not substantiated by credible evidence and that such misleading advertising was detrimental to both consumers and competing businesses. This case highlights the critical importance of truthful marketing practices, particularly in the context of health claims, and sets a precedent for future cases involving deceptive advertising. The Commission's ruling serves as a reminder for all businesses to ensure that their marketing materials are accurate and not misleading, thereby protecting consumer rights and promoting fair competition within the market. |
| Court |
Competition Commission of Pakistan
|
| Entities Involved |
Nelson Paint Industries (Pvt.) Limited,
Nippon Paint Pakistan (Pvt.) Ltd.
|
| Judges |
MS. RAHAT KAUNAIN HASSAN,
MUJTABA AHMAD LODHI
|
| Lawyers |
Hammad Saeed,
Ahsan Hameed Lillah
|
| Petitioners |
Messrs Nippon Paint Pakistan (Pvt.) Ltd.
|
| Respondents |
Messrs Nelson Paint Industries (Pvt.) Limited
|
| Citations |
2023 SLD 150,
2023 CLD 148
|
| Other Citations |
Show Cause Notice No. 1/2022,
Strepsil Order
|
| Laws Involved |
Competition Act, 2010
|
| Sections |
10
|