ISLAMABAD — The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) ruling against M/s At-Tahur (Pvt.) Limited — the company behind PREMA Milk — for engaging in deceptive marketing practices, but has significantly reduced the imposed fine from Rs35 million to Rs5 million.
The case, initially brought forward by the Pakistan Dairy Association (PDA), accused PREMA of disseminating misleading promotional content on social media platforms in the aftermath of the Supreme Court’s 2016 ruling on milk quality. The marketing campaign allegedly conveyed that other dairy products in the market were unsafe for consumption, effectively positioning PREMA as the only safe and viable option.
After a detailed investigation, the CCP found PREMA in violation of Section 10(1) of the Competition Act, 2010, along with sub-sections 10(2)(a), (b), and (c), which pertain to misleading marketing and false claims that could harm competitors. The Commission imposed a Rs35 million fine and instructed the company to publicly clarify its claims.
While the Tribunal agreed with the CCP’s findings and upheld the violation, it ruled that the original penalty was excessive. Consequently, the fine was reduced to Rs5 million, bringing a partial reprieve to the company while reinforcing the legal precedent against deceptive marketing in Pakistan’s dairy sector.
