Islamabad, May 15, 2025 — The Competition Appellate Tribunal (CAT) has affirmed the Competition Commission of Pakistan’s (CCP) decision in a high-profile deceptive marketing case against Diamond Paints.
The Tribunal upheld the Commission’s finding that the company violated Section 10 of the Competition Act, 2010, by misleading consumers through incomplete advertising.
The CCP had originally imposed a penalty of PKR 5 million on Diamond Paints. However, acknowledging the company’s admission of guilt and its compliance-driven posture, the Tribunal reduced the fine to PKR 2.5 million. The final order followed Diamond Paints’ appeal for leniency and recognition of its willingness to align with legal and ethical advertising standards.
In a press release issued Thursday, the Tribunal noted the company’s proactive steps to ensure future compliance. The reduced fine reflects this approach, and the matter has now been officially concluded.
The case began with a complaint filed by Nippon Paint Pakistan (Pvt.) Ltd, which accused Diamond Paints of failing to disclose essential information in its television commercials (TVCs). The CCP launched a formal investigation and discovered that while some disclaimers were present on packaging and shade cards, the TVCs—critical marketing tools—did not mention the presence or value of redeemable tokens included in paint buckets.
A bench of the CCP, comprising Chairman Dr. Kabir Ahmed Sidhu and Member Mr. Salman Amin, ruled that such selective omission constituted deceptive marketing. It misled consumers and deprived them of the ability to make informed purchasing decisions, which is a clear breach under Section 10(2)(b) of the Act.
The CCP emphasized that transparency in advertising, especially when promotional schemes like tokens or coupons are involved, is not optional—it’s essential. The Commission warned that any future violations involving misleading promotions would be met with strict enforcement action.
By reinforcing the CCP’s authority, the Tribunal’s decision sends a strong signal to businesses: consumer rights and truthful advertising must remain paramount in all marketing efforts.