The Competition Commission of Pakistan (CCP) has taken steps to address deceptive discount advertising practices among retailers, issuing notices to 20 brands involved in misleading “up to a percentage” discount offers during their “End of Season Sales.”
These brands have been asked to provide explanations for their potentially misleading promotions, which may violate consumer protection standards.
The CCP highlighted that such ambiguous discount schemes resemble “Bait and Switch Advertising,” a tactic used to deceive buyers by promoting an attractive but largely unattainable offer. Instead of providing the promised discount, retailers direct customers to less desirable alternatives. This practice is prohibited under Section 10 of the Competition Act, which outlines deceptive marketing as a violation of consumer rights.
As part of its investigation, the CCP’s Market Intelligence Unit/Office of Fair Trade conducted a survey across the twin cities of Islamabad and Rawalpindi. The survey found that many brands advertising “up to” discounts applied the maximum percentage to a small selection of less popular items, while high-demand products either had minimal discounts or none at all. This created confusion for consumers, who were often forced to inquire about the actual discounts available on items they wished to purchase.
Despite these concerns, the CCP also noted that some brands were transparent in their discounting practices, offering flat-rate discounts or clear disclosures about which items were eligible for specific deals. The Commission praised these brands for their adherence to ethical marketing practices.
The CCP advises all retailers to avoid misleading customers with vague promotions and to ensure transparency in their advertising. Brands are urged to clearly disclose actual and discounted prices, as well as the specific stock to which these discounts apply. Failure to comply with these guidelines could lead to enforcement actions under the Competition Act, 2010.
Additionally, the CCP encouraged consumers to be vigilant when taking advantage of sales and discount offers, urging them to carefully review the terms of such promotions to avoid falling victim to deceptive marketing practices.
The CCP remains committed to its mandate of promoting fair competition, enhancing economic efficiency, and safeguarding consumers from anti-competitive behaviors under the Competition Act, 2010.
