The Competition Commission of Pakistan (CCP) has fined 3M Pakistan (Private) Limited Rs. 10 million for what it found to be deceptive marketing involving a comparison between its Scotch-Brite product and Colgate-Palmolive Pakistan’s Max Scrub.
The penalty was imposed under Section 10 of the Competition Act, 2010, which covers deceptive marketing practices.
The case started after Colgate-Palmolive Pakistan filed a complaint against 3M Pakistan over a marketing campaign for Scotch-Brite.
According to the complaint, a video showed Scotch-Brite and Max Scrub being washed for 20 minutes. The demonstration showed Max Scrub deteriorating significantly, while Scotch-Brite appeared to remain in better condition.
The CCP later issued a Show Cause Notice to 3M Pakistan following an enquiry.
3M disputed the authenticity and reliability of the video and argued that the demonstration had been conducted by one of its employees in a personal capacity without company approval.
The Commission rejected this position after finding that Muhammad Imran, then Regional Sales Manager at 3M Pakistan, had acknowledged before the Enquiry Committee that he conducted the comparison.
The CCP said the demonstration was connected to his official responsibilities and took place in the context of a marketing campaign commissioned by 3M Pakistan. It therefore held the company responsible for the conduct.
The Commission said comparisons between competing products must have a reasonable basis and proper supporting evidence. It found that 3M Pakistan had failed to substantiate the claims made in the Scotch-Brite comparison.
The CCP also considered a laboratory report submitted by Colgate-Palmolive. According to the Commission’s order, the third-party testing found the two products to be of similar quality, and 3M did not rebut the report during the proceedings.
3M had also argued that the demonstration was not advertising because it was shown to third-party channel partners rather than directly to consumers.
The CCP rejected this argument, noting that the channel partners were involved in promoting Scotch-Brite, increasing its market visibility and supporting sales.
The Commission imposed the Rs. 10 million penalty for violating Section 10(1) read with Section 10(2)(c) of the Competition Act, relating to false or misleading comparisons in advertising.
The CCP also directed 3M Pakistan not to repeat the same or similar conduct involving Max Scrub or comparable products of other companies.
3M Pakistan has been given 60 days to submit a compliance report confirming payment of the penalty. Failure to comply will result in an additional penalty of Rs. 50,000 per day from the date of the order.
