CCP Has Imposed Rs 26.9 Billion in Fines During the Past 10 Years

The Competition Commission of Pakistan (CCP) has imposed a penalty of Rs 26.903 billion on companies from different sectors for deceiving consumers and cartelization in the market during the past ten years.

A senior official of the Competition Commission of Pakistan (CCP) told that the following amounts were fined during the past 10 years;

Fines Imposed by CCP on Private Companies

Year Fine Imposed
2008 Rs. 206 million
2009 Rs. 6.786 billion
2010 Rs. 275 million
2011 Rs. 86 million
2012 Rs. 1.224 billion
2013 Rs. 17.733 billion
2014 Rs. 143.25 million
2015 Rs. 302 million
2016 Rs. 150 million
2017 Rs. 15 million

The CCP has given notices to companies from different sectors including banking, communication, oil and gas, health care, port and shipping, property and constructions, telecommunication, poultry, fertilizers, cement and aviation sectors for deceptive market practices and cartelization, the official added.

He said that CCP is mandated under the Competition Act to ensure free competition in all spheres of commercial and economic activity, to enhance economic efficiency and to protect consumers from anti-competitive practices including prohibited agreements.

The official said that CCP imposed a penalty on seven companies in September over deceptive marketing practice and cartelization in the open market.

CCP is yet to recover over 75% of fines imposed on companies, mainly due to legal constraints

He said the CCP has imposed a penalty of Rs 4.25 million on seven fabric and packaging companies for deceptive marketing practices and fraudulently using the registered trademark of ShajarPak (Pvt) Limited, a fabric manufacturer.

He added that ShajarPak complained to CCP that eight companies, including five fabric manufacturers, Ahmad Pasha Collection, Aamir Cloth House, M. Ramazan Fabrics, Pasha the Designer Fabrics, Sufi Cloth House, and three packaging manufacturers, Baba Plastic, Ahmad Plastic and Dabba House, and Kausar Brother Plastic Corner were falsely using its registered trademark ‘Pasha Fabrics’ on the packaging and labeling of their products.

ShajarPak further said that the unauthorized and fraudulent use of its trademark by these companies was harming its business interest.

The CCP’s inquiry established that ShajarPak had not authorized any of the above companies to use its trademark.
By copying the trademark and trade dress, these companies were deceiving consumers and harming the business interest of ShajarPak in violation of Section 10 of the Competition Act, 2010.

Show cause notices were issued to all of them on the recommendation of the inquiry report.