The Competition Commission of Pakistan (CCP) has instructed shoe and clothing brands to display the actual and discounted prices clearly on sale items. Failure to comply may lead to consequences with the CCP.
During the current period of significant discounts, especially in clothing and shoe stores, the CCP observed some brands using misleading marketing practices, potentially violating Section 10 of the Competition Act, 2010, which addresses deceptive marketing.
The CCP examined 27 brands offering ‘flat’ discounts and found discrepancies between the discount advertised outside the store and the actual discount inside. In many cases, the ‘terms & conditions’ were written in small, unreadable text, and sometimes, there was no mention of terms & conditions at all.
Instances were noted where offers like ‘flat 50% plus 20% on bank cards’ had different rules for online and in-store purchases, causing confusion and potentially misleading customers. This discrepancy was observed in about 96% of the stores examined. Lack of clear information makes it challenging for customers to make informed choices.
The CCP advises customers to be cautious, carefully checking all discount and sale details to avoid falling for deceptive marketing. The CCP has already provided guidelines on deceptive marketing, emphasizing that ‘Bait and Switch Advertising’ is not allowed.
This occurs when a product is advertised at a low price, but the actual purchase price is higher. The guidelines stress the importance of companies being transparent about terms and conditions everywhere to prevent misunderstandings. Small print that is difficult to read or conceals vital information is not permitted.
The CCP’s focus is on ensuring fair competition, promoting a well-functioning economy, and safeguarding customers from unfair practices, in line with the rules of the Competition Act.
