The Competition Commission of Pakistan (CCP) has taken decisive action against retailers advertising discounts as “up to a percentage” during “End of Season Sales,” issuing notices to 20 brands for clarification on their potentially misleading discount practices.
These unspecified discount offers are considered akin to ‘Bait and Switch Advertising,’ a tactic designed to mislead consumers by promoting an attractive but deceptive offer. This practice, where sellers advertise a product or service they do not intend to sell, only to offer an unwanted alternative, is prohibited under Section 10 of the Competition Act as Deceptive Marketing Practices.
The CCP’s Market Intelligence Unit/Office of Fair Trade conducted a random survey in Islamabad and Rawalpindi, identifying several brands offering discounts “Up to Some Percentage” on their products. The survey revealed that the maximum advertised discounts were often applied to a limited selection of less desirable items, while popular and frequently purchased products were available with minimal or no discount.
This discrepancy between advertised and actual discounts has led to consumer confusion, prompting numerous inquiries to determine the true discounts available on selected items. However, some brands were found to be offering flat discounts or concessions with adequate disclosures, specifying whether the discounts applied to the entire, limited, or specified stock, a practice commended by the CCP.
The Commission has advised consumer brands to avoid disseminating misleading information and to ensure clear and adequate disclosures regarding actual and discounted prices, along with details of the stock on offer with flat or differential discounts. Brands and outlets failing to comply with this directive may face enforcement action under Section 10 of the Competition Act, 2010.
Consumers are also urged to exercise caution when availing themselves of discounts and sales offers to avoid falling victim to deceptive marketing practices.
The CCP remains steadfast in its commitment to its mandate under the Competition Act, 2010, continuously striving to ensure free competition, enhance economic efficiency, and protect consumers from anti-competitive behavior.
