Deceptive marketing practices: CAT upholds CCP findings against marketers of PREMA Milk
M/s At-Tahur (Pvt) Limited, the processors and marketers of PREMA Milk, for engaging in deceptive marketing practices in violation of Section 10 of the Competition Act, 2010.
The case originated from a complaint filed by the Pakistan Dairy Association (PDA), alleging the PREMA disseminated misleading claims on social media after the Supreme Court's 2016 judgment on milk quality. PREMA's marketing campaign implied that all other dairy products, except PREMA's, were unfit for human consumption—an assertion found to lack reasonable basis and capable of harming competitors' business interests.
Following an inquiry, the CCP concluded that the company had violated Section 10(1), read with Section 10(2)(a), (b), and (c) of the Act. It imposed a penalty of PKR 35 million and directed the PREMA to issue a public clarification about its misleading claims.
While upholding CCP's findings, the CAT observed that the penalty amount is excessive and reduced the fine from Rs 35 million to Rs 5 million.
Copyright Business Recorder, 2025
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