Competition Commission of Pakistan (CCP) has passed an order imposing a total penalty of Rs. 18 million on 18 electric cable manufacturers for violating Section 10 of the Competition Act, 2010 by hiding the presence of cash/cash coupons inside the packaging of electric wire cable bundles from consumers.
CCP conducted an inquiry after receiving information that many electric wire manufacturing companies were inserting cash/cash coupons inside the bundle packs of electric wire but they were not disclosing this on the packaging or other promotional material. The practice only benefits the electricians who generally open the packs and deceives the end consumers who ultimately pay for the value of the coupons but are unaware of it.
CCP inquiry found 18 electric cable manufacturers are inserting cash coupons of various denominations in the packing of their electric cable/wire bundles and not disclosing it anywhere.
These manufacturers are:
- Dawn Cables,
- G.M. Cables,
- Fast Cable,
- Hitech English Cables,
- Pak Muzaffar Cable,
- Alfa Plus Wire Cable,
- Hi Ace English Cable,
- Gold Royal Cable,
- Zafar Cable,
- Â Nation Cable,
- Puller Cable,
- Welcome Cables,
- Dewan Cables,
- E-Flux Cables,
- Hero Cable,
- Falcon Cable,
- Lear Cables
- and Rana Cables
During the hearings, most of these cable manufacturers admitted their involvement in the deceptive practice and made commitments to stop doing so in the future.
The order stated that the insertion of a token in the electric cable packs without due disclosure is a violation of Section 10. The order imposed a penalty of Rs. 5 million each on Fast Cables and G.M. Cables and Pipes, and Rs. 500,000 (five hundred thousands) each on remaining 16 cable manufacturers, directing them to refrain from indulging in any form of deceptive marketing practices in the future.
The commission has also directed these companies to disclose the presence and the coupon’s value in their marketing material, and publish four advertisements of A-4 size in 2 English and 2 Urdu newspapers of national circulation informing the public about the presence and price value of coupons.
Moreover, they were also directed to visibly print the token’s value on the packaging, and submit a compliance report within 60 days to Registrar of the commission.
kya matlab? wo pese dal rahey hain andar aur kuch advertising bhi nahi box pe?
Areeb to give the benefit to dealers/retailers. And the dealers says humain tou ati he mehngi hai yeh voucher daikh lain ap.
What was the purpose of this practice? Were they trying to lure the electricians to make their customer buy the cables of their brand?
they are offering electrician to use their brand instead of using using quality product which give loss to customer who is paying while getting cheap quality.
This is the truth to believe by CCOP in Pakistan. The revelation of false claim, advertising, specs., and on top of it the Famous Token initiative founder among Civil Society organisation in Paint industry is thoroughly remembered. Again the token is alive with the cable industry. Thanks CCOP.