ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a penalty of Rs1 million each on five battery manufacturers for violating section 10 of the Competition Act 2010 by hiding important information about their products from consumers.
The commission received a formal complaint that various battery makers were misleading consumers about their dry and acid-lead batteries by not disclosing material information such as product capacity on its body, packaging and warranty cards.
The CCP’s enquiry found that five manufacturers, including Atlas Battery, Exide Pakistan, Pakistan Accumulators, Millat Industrial Products and Century Engineering Industries, were in violation of the rules. Without such vital information, the consumers were unable to compare and differentiate the quality, suitability for use and price of the products.
The order stated that by omitting important information from their products and the marketing material, these companies not only deceived consumers but also harmed competition in the market. The companies admitted before the CCP that they concealed key information about their products from consumers and assured the commission to print the capacity on the packaging, body, and warranty cards of batteries. Similarly, they will also amend their advertisements and all marketing material to mention the capacity and other characteristics of their products.
Accepting their commitments to comply with Section 10 of the Competition Act, the commission took a lenient view and imposed a minimum penalty of Rs1m each on these five battery manufacturers.
CCP is mandated under the act to ensure free competition in all spheres of commercial and economic activity, to enhance efficiency and protect consumers from anti-competitive practices.
