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May 1, 2019

Pakistan cable manufacturers are fined for deceptive marketing practices

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The Competition Commission of Pakistan (CCP) has fined cable manufacturers a total of approximately $127,000 for indulging in deceptive marketing practices.

Per an article in Dawn, Pakistan’s oldest most widely read English-language newspaper, the commission conducted an inquiry against 18 cable manufacturers. They were alleged to have inserted cash and coupons inside the bundle packs of electric wire that did not disclose what was inside. CCP noted that these practices only benefited electricians who generally open the packs and ended up deceiving end consumers who ultimately pay for the value of the coupons without being aware of it.

The CCP inquiry ruled that the behavior had been done by the following manufacturers: Dawn Cables, GM Cables, Fast Cable, Hitech English Cables, Pak Muzaffar Cable, Alfa Plus Wire Cable, Hi Ace English Cable, Gold Royal Cable, Zafar Cable, Nation Cable, Puller Cable, Welcome Cables, Dewan Cables, E-Flux Cables, Hero Cable, Falcon Cable, Lear Cables and Rana Cables. The companies admitted their involvement during the hearings for the charges, which stem back to 2016.

Fast Cables and GM Cables were each fined approximately $70,700, with the test of the fines split between the other 16 companies. There was no explanation for the difference. The insertion of a coupon was a violation of Section 10 as the products lack a reasonable basis related to the price printed for the consumer. All the companies were also directed to take out ads in English and Urdu newspapers informing the public about the presence and price value of coupons.

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