Islamabad: The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) decision to impose penalties on Zafar Cables and other manufacturers for hiding cash coupons in electric wire bundles without informing consumers, a practice deemed deceptive.
According to Competition Commission of Pakistan, the inquiry into the matter began after reports surfaced that several electric wire manufacturers were inserting cash or coupons inside their product packaging. This undisclosed practice was found to primarily benefit electricians who open the packages, while deceiving consumers who were unaware yet paid for the added value of these coupons.
The investigation identified 18 companies, including Zafar Cables, that engaged in this deceptive practice. Most of these manufacturers acknowledged their actions during the hearings and pledged to cease such practices. The CCP’s subsequent ruling highlighted that the non-disclosure of these coupons in electric wire bundles lacked a reasonable basis, misleading consumers about the true cost of the products, and violated Section 10 of the Competition Act 2010. As a result, a fine of PKR 500,000 was levied against the involved parties.
Zafar Cables appealed the CCP’s decision to the CAT but failed to appear at scheduled hearings repeatedly, leading to the dismissal of their appeal for non-prosecution.