96% clothing, shoe brands offer fake discounts to lure customers: CCP

As the sale season's flat discount offers lure us to brand stores, it frequently leads to disappointment as we find the discount price on the sale product differs from the so-called 'flat 50, 40, or 20%' discounts the brand has been promoting in TV advertisements and on social media. The Competition Commission of Pakistan (CCP) has warned clothing and shoe brands regarding such inconsistencies.

In a shocking revelation by the CCP, nearly 96% of the outlets were found engaged in deceptive marketing practices.

The CCP has issued a stern warning to shoe and clothing brands against manipulating customers through misleadingly high discounts, strongly urging the disclosure of accurate and transparent final prices on all sale items.

"The brands violating this directive may face enforcement actions by the CCP," said the advisory issued by the CCP. 

A report mentioned that these underhanded marketing practices, characterised by their deceptive elements, violate the  Section 10 of the Competition Act, 2010.

The CCP discovered inconsistencies in bank card discount offers, with different terms and conditions applying to online and in-store purchases.

A lack of prominent and readily accessible "terms & conditions" may have contributed to confusion and uncertainty among customers.

A CCP survey and preliminary investigation unearthed deceptive marketing practices employed by 27 brands in Pakistan. These tactics involved misleading "flat discount" offers that excluded certain items and displayed higher sale prices on advertised products.

The CCP denounced misleading marketing tactics employed by brands and issued clear guidelines outlining prohibited practices under Section 10, including the "bait and switch" advertising that lures customers with false price promises.

To protect themselves from deceptive marketing tactics, the CCP urged consumers to be vigilant and scrutinise the terms and conditions mentioned with advertised discounts and sale offers.