The Competition Commission of Pakistan (CCP) has been making headlines for quite some time as it has been very active in identifying deceptive marketing practices employed by various brands to acquire competitive edge over their rivals. Over the past few weeks, the competition watchdog imposed hefty penalties on several brands for running deceptive marketing campaigns. CCP is again under the spotlight and this time it has issued Show Cause Notice (SCN) to M/s Kitchen Stone Foods, a frozen food manufacturing company, for running a deceptive marketing campaign for its frozen food products.
CCP took the action against the company upon receiving formal complaints from M/s Quick Food Industries (Pvt.) and M/s Seasons Foods (Pvt.), who alleged that Kitchen Stone Foods was cheating its consumers by making claims that its products were “100% Non–Processed Food.”
Subsequently, CCP investigated the matter and concluded that the social media advertisements of Kitchen Stone Foods were deceptive and influenced consumers buying decisions through comparison between compliant products and various articles claiming that those products are not fit for human consumption.
The investigation revealed that the company was involved in deceptive marketing for quite some time and had used various marketing channels to convey its message.
As per the investigation report, the company not only deceived consumers with such deceptive marketing practices but these campaigns were also capable of harming the business interest of the complainants and other competitors.