The Competition Commission of Pakistan (CCP) has issued a show-cause notice to M/s Hi-Tech Blending (Pvt.) Ltd, the importer of ZIC Lubricants, Korea, for making unsubstantiated claims about its products and prima facie violating Section 10 of the Competition Act, 2010.
Chevron Pakistan Lubricants, the manufacturer and supplier of lubricants which are used in passenger vehicles, industrial and off-highway equipment and machinery, sent a formal complaint to the CCP that Hi-Tech Blending (Pvt.) Limited has been advertising false and misleading information to consumers. It also included a false and misleading comparison of goods lacking reasonable basis through their recent marketing campaign through a television commercial, brochures and social media.
The commission’s inquiry found that in order to promote their brand “ZIC”, Hi-Tech Blending launched a marketing campaign claiming its products to be superior over those of the competitors in terms of quality, efficacy and fitness.
The inquiry report concluded that by making these claims, High-Tech Blending was prima facie violating Section 10 of the Competition Act by disseminating false and misleading information to consumers and harming the business interests of its competitors including the complainant. On the inquiry’s recommendations, a Show Cause Notice has been served on Hi-Tech Lubricants.
The 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 deceptive marketing practices.