The Competition Commission of Pakistan (CCP) has imposed a hefty fine of Rs. 20 million on a pharmaceutical company for using fraudulent certification for kidney dialysis machines and referred the matter to the Federal Investigation Agency (FIA) for further investigation.
According to the CCP’s order, the violation occurred over 22 months, starting in 2019 when the alleged fake certificates were obtained, and ending on March 20, 2021, when the company ceased using the deceptive marks. During this period, the company generated approximately Rs. 20 million in sales from the deceptive practice, which not only misled consumers but also harmed competitors who invested in obtaining valid certifications.
The CCP found that the company’s actions violated Section 10(1) and Sections 10(2)(a) and 10(2)(b) of the Competition Act. The commission emphasized the seriousness of the violation, particularly because the affected products were intended for kidney dialysis, a critical service for vulnerable patients. The CCP noted that deceptive claims could severely impact healthcare organizations providing dialysis services.
Despite the severity of the offense, the CCP considered the company’s willingness to cease its practices since March 2021 and its commitment to comply with the law. Consequently, the CCP imposed a penalty of Rs. 10 million for each of the violations, totaling Rs. 20 million. The company has been ordered to deposit the penalty amount in the designated official account.
The company has also been directed to cease all misleading marketing practices in the future and refrain from making false claims about certifications or compliance with standards. The CCP stressed that strict action against such practices is crucial to ensure fair competition and protect consumers.
During the hearings, the CCP also reviewed allegations regarding the use of food-grade sodium bicarbonate instead of pharma-grade in the production of haemodialysis concentrate by the respondent. These allegations were not countered by the company. The CCP has forwarded a copy of its order to the Drug Regulatory Authority of Pakistan (DRAP) and the FIA, recommending investigations and appropriate action under applicable laws.
This decision reflects the CCP’s commitment to curbing deceptive practices and safeguarding both consumer interests and fair market competition.
