Competition Commission of Pakistan) CCP has imposed fine on three milk companies for misleading customers through deceptive marketing tactics.
Dairy Omung, Dairy Rozana and Qudrat (liquid tea whitener) are the products that manufacturers are selling without telling the actual type of the product to customers and misleading them.
CCP has passed an order imposing fine of PKR 62.29 million on Engro Foods Ltd. (EFL) PKR 2 million on Noon Pakistan Ltd.(NPL), and PKR 500,000 on Shakarkangi Food Products Ltd. (SFL) for giving a perception that their respective products were milk while they were tea whitener or a dairy drink.
CCP’s three-membered bench comprising chairman Vadiyya Khalil, and members Dr. Shehzad Ansar and Ikram-ul-Haq Qureshi. CCP issued a show-cause notice to the companies after finding them to be deceptive in their marketing campaigns by selling the tea whiteners and dairy drinks as milk.
CCP found that EFL in its marketing campaign of the Daily Omung gave an impression that product was milk and on its website company labeled as an alternate of loose milk, while in reality ‘Dairy Omung’ was a dairy drink only.
The package and label of the ‘Dairy Rozana” gave an impression that it was milk not a dairy drink thus lying to the consumers and making them buy a wrong product.
CCP found the packaging of SFPL’s Qudrat to be deceptive as no disclosure about the exact nature of the product was there.
Using the deceptive marketing tactics by manipulating the material information and misleading the consumers, comes under the violation of section 10 of the Competition Act.
Earlier, it was found that famous tetra pack milk brands in Pakistan were selling the heavy metals and poisonous chemicals that were used to preserve the dead bodies, on the name of milk. CCP has fined these dairy product manufacturers on the basis of not revealing the sufficient information for consumers and competitors while exact composition of the stuff being sold as milk is still not known.