ISLAMABAD: The Competition Appellate Tribunal (CAT) has upheld a ruling by the Competition Commission of Pakistan (CCP) against Diamond Paints, confirming the company’s violation of Section 10 of the Competition Act, 2010 for deceptive marketing practices. However, the tribunal reduced the original Rs5 million fine to Rs2.5 million in light of the company’s cooperative stance and admission of guilt.
In a press release issued Tuesday, the CCP stated that Diamond Paints had sought leniency after admitting to misleading consumers through its advertising practices and agreed to align with regulatory standards. Recognizing this compliance-oriented approach, the tribunal concluded the appeal with a reduced penalty.
The case was initiated on a complaint filed by Nippon Paint Pakistan (Pvt.) Ltd, which alleged that Diamond Paints failed to disclose critical information in its television commercials (TVCs) about redeemable tokens included in paint buckets. While disclaimers were present on product packaging and shade cards, the CCP’s investigation found that the TVCs—often the first point of contact for consumers—did not mention the presence or value of the promotional tokens.
The CCP’s original order was issued by a bench comprising Chairman Dr. Kabir Ahmed Sidhu and Member Mr. Salman Amin. The Commission found that omitting such material information from the TVCs misled consumers and denied them the right to make informed choices.
“Promoting redeemable tokens without disclosing their value in advertisements lacks a reasonable basis under Section 10(2)(b) of the Act,” the CCP stated. It added that transparency in advertising is essential, especially when promotional offers have the potential to influence purchasing decisions.
With the tribunal’s verdict now in place, the CCP reiterated its commitment to ensuring fair competition and protecting consumer rights in Pakistan’s growing retail and advertising sectors.
