Competition Commission says 3M failed to substantiate a comparison between Scotch-Brite and Colgate-Palmolive’s Max Scrub.
The Competition Commission of Pakistan (CCP) has imposed a PKR 10 million penalty on 3M Pakistan (Private) Limited for deceptive marketing involving a false or misleading comparison between its Scotch-Brite product and Colgate-Palmolive Pakistan Limited’s Max Scrub.
The commission said the conduct violated Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices.
Complaint Over Product Comparison
The proceedings followed a complaint filed by Colgate-Palmolive Pakistan, which alleged that a Scotch-Brite marketing campaign included a video comparing its product with Max Scrub.
According to the CCP, the demonstration showed both products being washed for 20 minutes. Max Scrub was then presented as having deteriorated significantly, while Scotch-Brite appeared to remain in comparatively better condition.
Following an enquiry, the CCP issued a Show Cause Notice to 3M Pakistan. The company disputed the authenticity and reliability of the video, arguing that the demonstration had been conducted by an employee in his personal capacity and without the company’s authorisation.
The Commission rejected this position after considering evidence presented during the proceedings.
CCP Holds 3M Responsible
The CCP said Muhammad Imran, who was Regional Sales Manager at 3M Pakistan at the time, acknowledged before the Enquiry Committee that he had conducted the comparison.
The Commission concluded that the demonstration was sufficiently connected to his official responsibilities and took place in the context of a marketing campaign commissioned by 3M Pakistan. As a result, the conduct was attributable to the company.
The CCP said comparative advertising must have a reasonable basis and recognisable substantiation, particularly when claims concern the performance or quality of competing products.
It found that 3M Pakistan had failed to substantiate the comparison presented in the campaign.
The Commission also considered a third-party laboratory report submitted by Colgate-Palmolive, which concluded that the two products were of similar quality. The CCP noted that 3M did not rebut the findings during the proceedings.
Marketing Claim Deemed Misleading
The CCP also rejected 3M Pakistan’s argument that the demonstration did not amount to advertising because it was shown to third-party channel partners rather than directly to consumers.
According to the Commission, these channel partners were involved in promoting Scotch-Brite, increasing its market visibility and supporting sales, bringing the activity within the scope of advertising under the Competition Act.
The CCP therefore imposed the PKR 10 million penalty for violating Section 10(1), read with Section 10(2)(c), concerning false or misleading comparisons of goods in advertising.
The Commission said the penalty reflected the seriousness of the infringement and the need to deter deceptive marketing practices.
3M Pakistan has also been directed not to repeat the same or similar conduct involving Max Scrub or any comparable product of another undertaking.
The company must submit a compliance report confirming payment of the penalty within 60 days. Failure to comply will result in an additional penalty of PKR 50,000 per day from the date of the order.