Has CCP Really Issued Show-Cause Notice to Hyundai?
From the last couple of days, a news was circulating on news websites and social media that the Competition Commission of Pakistan (CCP) has issued a show-cause notice to Hyundai Nishat Motors for prima facie “deceptive marketing” for its marketing campaign of Hyundai Tucson.
So, after our research, we have found that the news is correct. Talking to PakWheels, CCP official confirmed that, yes, the institution has issued a notice to the company. The notice has been issued for alleged violation of Section 10 of the Competition Act, 2010. The CCP said that the automaker has been given 14 days to respond.
The government body took a suo moto notice over Hyundai Nishat’s advertisements, published in print media and across social media, publicising Tucson’s introductory price with a disclaimer of a limited period. As per CCP, the introductory was visible in large font size; however, the disclaimer was hard to notice as it was printed in a much smaller font size.
Furthermore, the CCP came to know that Tucson’s initial booking period with the introductory price lasted for less than 24 hours. After that, the price was increased by Rs200,000. Just after a day of booking started, the company announced that all Tucson units with introductory price have been booked, while the introductory price was removed from all social media platforms of the company.
Problem in Advertisement:
After the initial inquiry, the fair trade office of CCP found that the position of the disclaimer could be misleading to the customers. Moreover, the advertisement gave the overall impression that the company did not clearly mention to customers:
- The period of the introductory price
- Number of vehicles available at that price
Henceforth, prima facie, the advertainment has violated Section 10 of the Competition Act. The CCP is mandated to ensure fair competition to protect consumers from deceptive marketing.
What Hyundai Said?
After being asked for a comment on the issue, the company has stated that it cannot comment anything on the matter for the time being.