Govt issues notices to famous brands over misleading discount ads

The Competition Commission of Pakistan (CCP) has taken significant action against retailers promoting misleading discount offers labeled as “up to a percentage” during the “End of Season Sales.”

Notices have been issued to 20 brands, requiring clarification on their potentially deceptive discount practices.

These unspecified discount promotions resemble “Bait and Switch Advertising,” a tactic designed to mislead consumers by presenting an appealing yet false offer. This approach involves selling products or services that the seller does not intend to provide, instead offering an undesirable alternative, which is prohibited under Section 10 of the Act concerning Deceptive Marketing Practices.

The CCP's Market Intelligence Unit conducted a random survey in the twin cities and found numerous brands advertising discounts of “up to some percentage” on their products. The survey highlighted that the maximum discounts were predominantly applied to a limited selection of less popular items, while the most sought-after products were often available with minimal or no discount at all.

This discrepancy has created confusion among consumers, who are left questioning the actual discounts on their desired items.

However, some brands were noted to offer flat discounts or clear concessions on either the entire stock or specific items, accompanied by proper disclosures and disclaimers. The CCP commended these practices as they enhance transparency for consumers.

In light of these findings, the commission advises consumer brands to avoid disseminating misleading information and to ensure that clear disclosures regarding actual prices and discounts are provided, along with details about the stock available.

Brands and retailers that fail to comply with this directive may face enforcement actions by the CCP under Section 10 of the Competition Act, 2010.

Consumers are also urged to remain vigilant when taking advantage of discounts and sales offers to avoid falling prey to deceptive marketing tactics.