Competition Tribunal Upholds CCP Penalty Against Battery Manufacturer

The Competition Appellate Tribunal (CAT) has unanimously upheld the level of penalty imposed by the Competition of Pakistan (CCP) on ‘Dry & Acid-Lead’ Battery manufacturers for concealing crucial product information from consumers. In a recent judgment, CAT found the CCP’s penalties – Rs. 1 million each along with a per day penalty of Rs. 100,000 – fair and proportionate and has directed Millat Industrial Products Ltd and Century Engineering Industries (Pvt) Ltd to deposit the amount of penalty within the stipulated time period. The CCP received a formal complaint that various battery manufacturers were misleading consumers about their dry and acid-lead batteries by not disclosing material information such as product capacity on the products’ bodies, packaging, and warranty cards. Following a thorough inquiry, the CCP concluded that the absence of this vital information prevented consumers from comparing and differentiating the quality, suitability, and price of the batteries. This omission not only deceived consumers but also disrupted fair competition in the market. Therefore, the CCP imposed the penalties, citing violations of Section 10 of the Competition Act, 2010. Millat Industries and Century Engineering filed an appeal against the CCP’s order before CAT. However, CAT while dismissing the appeal, directed both undertakings to deposit the main penalty of Rs. 1 million along with a per day penalty of Rs. 100,000, starting from 31 May 2018 to 12 June 2018, within 60 days from the date of CAT’s order. Against the CAT’s order, both parties have filed appeals before the Supreme Court of Pakistan, which are currently awaiting adjudication.