The Competition Commission of Pakistan (CCP) has issued a notice to 20 brands in response to retailers advertising discounts as “up to a percentage” during the “End of Season Sales.”
Such unspecified discount offers are akin to ‘Bait and Switch Advertising,’ defined as a tactic to mislead buyers. In this practice, a seller advertises an appealing but deceptive offer to sell a product or service that they do not intend to sell.
Instead, the seller provides an unwanted alternative, which is prohibited under Section 10 of the Act as Deceptive Marketing Practices. The Market Intelligence Unit/Office of Fair Trade of the CCP conducted a random survey in the twin cities and identified various brands offering discounts “Up to Some Percentage” on their products.
The survey revealed that the maximum (upper limit) discounts were applied to a small selection of less attractive items, while the most popular and frequently purchased products had minimal or no discounts at all.
As a result, a significant gap was observed between the advertised discounts and the actual offers, leading customers to ask numerous questions to determine the true discounts available on their selected items.
However, some brands were offering flat discounts or concessions (discounts up to a specified limit) with appropriate disclosures or disclaimers regarding the entire, limited, or specified stock, which the CCP highly appreciates.
The Commission advises consumer brands offering discounts to avoid disseminating any misleading information and to ensure clear and adequate disclosures about actual and discounted prices, including details about the stock on offer with flat or differential discounts.
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Entities, brands, and outlets that violate this directive may face enforcement action from the CCP under Section 10 of the Competition Act, 2010. Consumers are also advised to remain vigilant when taking advantage of discounts and sales offers to avoid falling prey to deceptive marketing practices.
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