Islamabad: The Competition Commission of Pakistan (CCP) has imposed a PKR 5 million penalty on Diamond Paint Industries (Pvt) Ltd. for engaging in deceptive marketing practices, violating consumer protection laws.
According to Competition Commission of Pakistan, the penalty follows a complaint from Nippon Paint Pakistan (Pvt) Ltd., which challenged Diamond Paint’s promotional tactics for its ‘Durasilk’ product in television commercials. The CCP’s investigation, led by Chairman Dr. Kabir Ahmed Sidhu and Member Mr. Salman Amin, revealed that Diamond Paint failed to adequately disclose the presence and value of redeemable tokens in its paint buckets on TV, despite including disclaimers on its packaging and shade cards.
This marks the third instance where the paint manufacturer has been scrutinized for omitting crucial product information in its advertising, which significantly affects consumer decisions. The CCP underscored the importance of transparency in marketing, especially as television commercials often serve as the initial interaction between the product and consumers.
The ruling stressed that complete and clear disclosure of all product features, including redeemable tokens, is essential for enabling consumers to make informed choices. The decision aligns with the CCP’s Paint Order 2012, which demands explicit disclosure of such promotional tactics to avoid misleading consumers under Section 10(2)(b) of the Competition Act, 2010.