The CCP clarified that the Competition Act, 2010, specifically targets anti-competitive practices, including deceptive marketing, without encroaching on the mandate of the IPO
ISLAMABAD: The Competition Commission of Pakistan (CCP) has reaffirmed its exclusive jurisdiction to prevent and prohibit anti-competitive practices under Chapter II of the Competition Act, 2010, particularly focusing on Section 10(d). This section empowers the CCP to restore and maintain market competition, especially in cases involving deceptive marketing practices.
According to a press release issued by the CCP on Wednesday, a Commission bench passed an order that reinforces the Competition Act, 2010, as the specialized legal framework governing anti-competitive practices across Pakistan. The ruling solidifies the CCP’s role as the principal regulatory body in this domain. The order was issued in response to a jurisdictional challenge raised by M/s. S.M. Foods Makers Limited (SFML) and M/s. Volka Foods Limited (VFL). The dispute arose from complaints lodged by M/s. Ismail Industries Limited, M/s. English Biscuits Limited, and M/s. Hilal Foods Limited, which accused SFML and VFL of fraudulent use of trademarks and product packaging.
In response to these complaints, the CCP initiated an inquiry, which subsequently led to the issuance of show-cause notices to SFML and VFL. However, SFML contested the CCP’s jurisdiction by filing writ petitions before the Lahore High Court (Multan Bench). In its order, the CCP not only affirmed its authority to regulate deceptive marketing practices but also addressed concerns about a potential jurisdictional overlap with the Intellectual Property Organization (IPO).
The CCP clarified that the Competition Act, 2010, specifically targets anti-competitive practices, including deceptive marketing, without encroaching on the mandate of the IPO. The Commission’s consistent application of Section 10 in multiple rulings underscores its commitment to tackling marketing malpractices that distort competition and deceive consumers. This ruling is a significant assertion of the CCP’s role in maintaining fair market practices in Pakistan, ensuring that deceptive tactics that undermine competition and consumer trust are effectively addressed within the legal framework established by the Competition Act.
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