ISLAMABAD: The Competition Commission of Pakistan (CCP) has advised clothing and shoe brands offering discounts to provide comprehensive and clearly visible disclosures regarding both actual and discounted prices. Brands failing to comply with this directive risk facing enforcement actions by the CCP.
Amid the current seasonal surge in discounts, particularly among clothing and shoe brands, the CCP has uncovered instances of deceptive marketing practices. Preliminary investigations suggest that these practices may potentially violate Section 10 of the Competition Act, 2010, pertaining to deceptive marketing.
The CCP’s survey and initial probe have identified 27 brands offering ‘flat’ discounts on their products. However, it was noted that the ‘Flat discount’ did not apply to all items, with discrepancies observed between the advertised discount and actual sale prices inside the shops. In many instances, disclaimers about ‘Terms & Conditions’ were either in an illegible font size or completely absent.
Furthermore, certain offers, such as ‘Flat 50% plus 20% on bank cards,’ had varying terms for online and retail purchases, leading to confusion and potentially misleading consumers. These inconsistencies were noticed in approximately 96% of the surveyed outlets.
The absence of crucial information in disclosures limits consumers’ ability to make informed decisions. The CCP urged consumers to exercise caution and thoroughly review the terms and conditions of discounts and sales offers to avoid falling prey to deceptive marketing practices.
The CCP has already issued “Guidelines on Section 10: Deceptive Marketing Practices,” which prohibit ‘Bait and Switch Advertising’. This refers to the act of advertising a product at a low price but charging a higher price at the point of purchase.Â
These guidelines stress the importance for businesses to ensure clear disclosure of terms and conditions across all media, discouraging the use of fine print disclaimers or qualifications that obscure vital information.
The CCP maintains that it will make sure to uphold free competition, improve economic efficiency, and safeguard consumers from anti-competitive behavior in the light of the Competition Act.
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