ISLAMABAD: Competition Commission of Pakistan (CCP) has issued a show cause notice to M/s. Hyundai Nisha Motors Pvt Limited for explaining deceptive marketing practice for sale of its new Hyundai Tucson.
The CCP in a statement issued on Tuesday said that it had taken a suo moto notice of the advertisement published in print media and on various social media platforms publicizing the introductory price of Hyundai Tucson with a disclaimer, ‘for a limited period only.’ In these advertisements, though the introductory price was visibly printed in large font size, yet the disclaimer was not easily noticeable as it was printed much smaller font size.
Moreover, it was also brought to the CCP;s notice that the initial booking period for Hyundai Tucson with the introductory price lasted for less than 24 hours, and then the price was raised by Rs200,000. Within 24 hours of initial bookings, the company declared that all units of Tucson at the introductory price were booked and the introductory price list was removed from its website, Facebook and Instagram pages.
The CCP’s Office of Fair Trade (OFT) in its inquiry found that advertisement to be problematic in the position of the disclaimer could potentially mislead the consumers. Moreover, the advertisement left the overall impression that the company did not clearly indicate to consumers: (i) the period in which the introductory pries would apply, and (ii) the number of vehicles that were available at the price point, thereby, prima facie, violating provisions of Section 10 of the Competition Act.
On the enquiry’s recommendations, a show cause notice has been served on M/s. Hyundai Nishat Motor (Pvt) Limited company and the company has been given 14 days to respond.
CCP is mandated under the Competition Act to ensure fair competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from deceptive marketing practices.
