ISLAMABAD: The Competition Commission of Pakistan (CCP) has finally imposed a Rs 25 million fine on Hyundai Nishat Motor (Pvt) Limited for deceptive marketing practices during the 2020 launch of its Hyundai Tucson SUV.
The CCP’s investigation revealed that Hyundai advertised “introductory prices” of Rs 4,899,000 for the GLS/FWD model and Rs 5,399,000 for the ULTIMATE/AWD model during a Facebook Live event. However, these prices were valid for less than 24 hours, with the disclaimer “for a limited time only” printed in small, hard-to-read text. Subsequently, Hyundai increased the prices by Rs 200,000 and removed all mentions of the original prices from their website and social media platforms.
The CCP deemed this strategy as “bait advertising,” where consumers are lured with a low price that is quickly withdrawn. The Commission emphasised that Hyundai did not clearly communicate the terms of the offer, leading to consumer confusion. It also highlighted that Hyundai adheres to better marketing practices in other countries and that Pakistani consumers deserve the same standards.
According to the CCP, this action serves as a warning to companies that misleading advertising has consequences and underscores the importance of honest marketing practices.
The CCP initiated the investigation suo motu in March 2021, taking notice of the advertisements published in print media and on various social media platforms. The Commission’s Office of Fair Trade (OFT) found that the advertisements potentially misled consumers by not clearly indicating the duration of the introductory prices and the number of vehicles available at that price point, thereby violating provisions of Section 10 of the Competition Act, 2010.
