Tribunal Upholds CCP’s Penalty on Cable Manufacturer

The Competition Appellate Tribunal (CAT) has dismissed appeal of Zafar Cables against the Competition Commission of Pakistan’s (CCP) order for concealing cash coupons inside electric wire cable bundles without informing consumers. The CCP conducted an enquiry on receiving information that many electric wire manufacturing companies were inserting cash or cash coupons inside the bundle packs of electric wire but they were not disclosing this information on the packaging or other promotional material. The practice only benefited the electricians who generally open the packs and deceived the end consumers who ultimately pay for the value of the coupons but were unaware of it. The CCP’s enquiry revealed that 18 electric cable manufacturers, including Zafar Cables, were engaged in the deceptive practice, benefitting only electricians while deceiving the end consumers. During the hearings, most of these cable manufacturers admitted their involvement and made commitments to stop doing so in the future. The CCP’s order stated that the non-disclosure of the tokens in electric cables packs is deceptive, as it creates ambiguity and is found lacking in having a reasonable basis as to the price borne by the consumers. This constitutes a violation of Section 10 of the Competition Act 2010. Consequently, a penalty of Rs. 500,000 was imposed. Zafar Cables challenged the CCP’s order before the CAT. However, due to repeated absence on scheduled hearings, the Tribunal dismissed the appeal for non-prosecution.