The Competition Commission of Pakistan (CCP) has issued show-cause notices to 18 electric cable manufacturers for keeping consumers in the dark about cash/cash coupons in the electric wire cable bundles, thus resorting to deceptive marketing practices.
An inquiry conducted by CCP revealed that certain companies have started inserting cash/cash coupons of various denominations in the packaging of their electric wire cable bundles, but the packaging and other promotional material for these products neither indicated the presence of coupons nor reflected the value being charged from consumers in the final price. The practice is typically adopted by companies to attract the contractors/electricians hired by consumers for their work.
The non-disclosure of such cash/cash coupons constituted a deception as the consumers had to pay the price for something they were not even aware of. Moreover, through such practices, the companies in order to increase the sale of products might have compromised on the quality of electric cable to offset the cost of putting free coupons/cash.
Under the principles of competition, omission of material information about products not only misleads the consumers and could affect their purchase decision, but also gives an undue competitive edge to the companies over their competitors.
Based on the above findings, the CCP’s inquiry recommended to issue show-cause notices to Dawn cables, G.M. cables and pipes, Fast cables, Hitech English cables, Pak Muzaffar cable, Alfa Plus Wire cable, Hi Ace English cable, Gold Royal cable, Zafar cable, Nation cable, Puller cable, Welcome cables, Dewan cables, E-Flux cables, Hero cable, Falcon cables, Lear cables and Rana cables for, prima facie, violation of Section 10 of the Act.
The companies had been directed by the commission to file their written reply within 14 days.
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