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Business Recorder
5 days ago
- Business
- Business Recorder
CCP imposes Rs1 billion in penalties on cartels, deceptive advertisers during FY2024-25
The Competition Commission of Pakistan (CCP) issued 12 major orders during FY 2024-25, imposing penalties worth Rs1.007 billion on businesses involved in anti-competitive practices across key sectors including fertilisers, poultry, automobiles, pharmaceuticals, real estate, food, hygiene products, paints, and education, a CCP statement said on Monday. 'The commission has strengthened its enforcement arm and streamlined hearings by curbing unnecessary delays. This fast-track approach is helping CCP resolve cases swiftly and enforce the law more effectively,' the statement read. Out of the 12 orders issued, eight were related to deceptive marketing, it added. As per the details, three orders involved cartelisation and price fixing. One order was issued on the direction of the Lahore High Court to address the issue of CCP's jurisdiction in a case involving the deceptive and fraudulent use of a trademark under Section 10(2) of the Competition Act. Notices issued to sugar mills for rehearing in cartelisation case Moreover, CCP fined six urea manufacturers and their trade group—Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC)—a total of Rs375 million for price-fixing. Each company was fined Rs50 million; the association was fined Rs75 million. Another major penalty of Rs155 million was slapped on eight poultry hatcheries for fixing prices of day-old broiler chicks. In deceptive marketing cases, Kingdom Valley was fined Rs150 million for false claims about its housing project. Unilever and Friesland Campina Engro were fined Rs75 million each for marketing frozen desserts as ice cream. Unilever also faced an additional Rs60 million penalty for deceptive ads for Lifebuoy products, CCP said. Al-Ghazi Tractors was fined Rs40 million for false fuel efficiency claims. Hyundai Nishat Motors received a Rs25 million fine for misleading ads about the Hyundai Tucson SUV. Deceptive marketing practices: CAT upholds CCP findings against marketers of PREMA Milk 3N Lifemed Pharmaceuticals was fined Rs20 million for using fake certification for dialysis machines. The fine was later reduced to Rs2 million by the Competition Appellate Tribunal (CAT). British Lyceum and Diamond Paints were fined Rs5 million each for publishing misleading advertisements. 'Cartelisation is a serious offence and will not be tolerated,' warned CCP Chairman Dr Kabir Sidhu. 'Cartels harm economic growth, violate consumer rights, and deter new investment,' he was quoted as saying in the CCP statement. He further emphasised that association platforms must not be used for 'price collusion or to facilitate market abuse', which leads to the exploitation of the entire nation.
Business Recorder
08-07-2025
- Business
- Business Recorder
CCP conducts 24 inquiries in 2024-25
ISLAMABAD: To ensure fair business practices in markets, the Competition Commission of Pakistan (CCP) conducted 24 new inquiries in corporate sector including 11 related to cartelization and 13 concerning deceptive marketing practices in 2024-25. The CCP undertook robust enforcement measures in fiscal year (2024–25), targeting cartelization, abuse of dominant position, and deceptive marketing practices. The Commission successfully concluded 14 investigations, which were forwarded for the adjudication process. The sectors under scrutiny included e-commerce, telecommunications, aviation, steel, transport, edible ghee and cooking oil, pharmaceuticals, construction, commodities, and education. The Cartel and Trade Abuse Department of the CCP, in its efforts to curb cartelization and market manipulation, initiated 11 new inquiries across various sectors, including e-commerce, telecommunications, aviation, steel, transport, edible ghee, cooking oil, and gas. In addition, 10 ongoing inquiries from previous periods were also under investigation. The department successfully concluded 9 inquiries, which were subsequently forwarded for adjudication. A key case involved ten steel structure suppliers allegedly engaged in bid rigging in tenders issued by power distribution companies (DISCOs). Another major case focused on two leading flat steel manufacturers accused of price fixing. In the transport sector, proceedings were initiated against the Transporters Goods Association (TGA) and the Local Goods Transport Association (LGTA) for allegedly fixing freight rates for cargo transport from Port Qasim. In the cables industry, leading companies were investigated for restricting their dealers from offering discounts below the notified prices—an act considered a prohibited agreement under Resale Price Maintenance (RPM). The CCP's Office of Fair Trade (OFT) initiated 13 new investigations against businesses involved in deceptive marketing practices. Additionally, 8 inquiries from the previous year remained ongoing. OFT successfully concluded five investigations—two in the pharmaceutical sector and one each in the construction, commodities, and education sectors. Notable cases of deceptive marketing included AR Amreli Builders for unauthorized use of Amreli Steels' trademark, Panther Tyres for allegedly misleading claims of being 'Pakistan's No 1 Tyre,' and FS Cosmetics for copying Dabur Amla Hair Oil's packaging — for making misleading claims. Chairman CCP, Dr Kabir Sidhu, stated that cartelisation, market manipulation through abuse of dominance, and deceptive marketing severely harm consumer rights and distort healthy competition. He emphasized that the CCP maintains zero tolerance for such practices and is committed to taking strict action against them. Copyright Business Recorder, 2025
Business Recorder
07-07-2025
- Business
- Business Recorder
FY2024-25: CCP ramps up enforcement against cartels, deceptive marketing
The Competition Commission of Pakistan (CCP) undertook robust enforcement measures in FY 2024–25, targeting cartelisation, abuse of dominant position, and deceptive marketing practices to ensure fair business practices in markets, a CCP statement read on Monday. As per the details, the commission initiated 24 new inquiries—11 related to cartelisation and 13 concerning deceptive marketing practices. 'It successfully concluded 14 investigations, which were forwarded for the adjudication process. The sectors under scrutiny included e-commerce, telecommunications, aviation, steel, transport, edible ghee and cooking oil, pharmaceuticals, construction, commodities, and education. Two firms found guilty of Rs1.13bn anti-competitive pact in pharmaceutical sector 'The Cartel and Trade Abuse Department of the CCP, in its efforts to curb cartelisation and market manipulation, initiated 11 new inquiries across various sectors, including e-commerce, telecommunications, aviation, steel, transport, edible ghee, cooking oil, and gas,' the statement read. In addition, the CCP said, ongoing inquiries from previous periods were also under investigation. 'The department successfully concluded 9 inquiries, which were subsequently forwarded for adjudication.' A key case involved ten steel structure suppliers allegedly engaged in bid rigging in tenders issued by power distribution companies (DISCOs). Another major case focused on two leading flat steel manufacturers accused of price fixing, according to the statement. In the transport sector, proceedings were initiated against the Transporters Goods Association (TGA) and the Local Goods Transport Association (LGTA) for allegedly fixing freight rates for cargo transport from Port Qasim. In the cables industry, companies were investigated for restricting their dealers from offering discounts below the notified prices—an act considered a prohibited agreement under Resale Price Maintenance (RPM). 'The CCP's Office of Fair Trade (OFT) initiated 13 new investigations against businesses involved in deceptive marketing practices. Additionally, 8 inquiries from the previous year remained ongoing. 'OFT successfully concluded five investigations—two in the pharmaceutical sector and one each in the construction, commodities, and education sectors,' the CCP said. CCP says recovered Rs10mn penalty from PIA for 'abusing dominant position' The commission further said notable cases of deceptive marketing had included AR Amreli Builders for unauthorised use of Amreli Steels' trademark, Panther Tyres for allegedly misleading claims of being 'Pakistan's No. 1 Tyre,' and FS Cosmetics for copying Dabur Amla Hair Oil's packaging— for making what it called misleading claims. Chairman CCP, Dr Kabir Sidhu, was quoted as saying in the statement that cartelisation, market manipulation through abuse of dominance, and deceptive marketing severely harm consumer rights and distort healthy competition. He emphasised that the CCP maintains zero tolerance for such practices and is committed to taking strict action against them.
Express Tribune
30-04-2025
- Business
- Express Tribune
Poultry cartel fined Rs150m for inflating chick prices via WhatsApp
Listen to article The Competition Commission of Pakistan (CCP) has fined eight major poultry hatcheries Rs150 million for forming a cartel that artificially raised chick prices by over 340%, driving up the cost of chicken for consumers, Express News reported on Wednesday. In a statement, CCP said its investigation found evidence of collusive practices, including price fixing via WhatsApp and text messages in a group named 'Chick Rate Announcement.' Prices of day-old chicks reportedly surged from Rs17.92 to Rs79.92 due to coordinated pricing among hatcheries operating in Punjab, Multan, and Karachi. According to the CCP, Big Bird's marketing manager, Dr Shahid, frequently shared updated rates—198 times in total—with 108 shared via SMS and 87 via WhatsApp. Senior officials of a poultry association were also implicated in the price manipulation scheme. Two companies—Sadiq Poultry and Islamabad Feeds—had earlier obtained a stay order against the proceedings. However, after the stay was dismissed, the CCP resumed action and issued show-cause notices, leading to the penalty. The Lahore High Court upheld the Commission's authority to take action under the show-cause process. CCP Chairman Dr Kabir Sidhu warned trade associations against engaging in price fixing, stating their role should be limited to member welfare and sector development. He urged the public to report any signs of cartelisation in any sector.
