CCP cleared to resume proceedings in 3 cases involving allegations of deceptive marketing practices

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ISLAMABAD-The Competition Commission of Pakistan (CCP) has been allowed to pursue three major cases following the ruling of the Lahore High Court, Multan Bench. The Court has authorized the Competition Commission of Pakistan (CCP) to resume proceedings in three cases involving allegations of deceptive marketing practices. The move follows the courts’ recognition of the CCP as the primary authority to deal with competition-related matters, affirming its status as the forum of origin for such matters.

The cases stemmed from investigations initiated on the basis of formal complaints lodged by three companies, including M/s. Ismail Industries, M/s. Hilal Foods and M/s. English biscuit manufacturers against M/s. SM Food Makers Limited and M/s. Volka Foods. The plaintiffs accused the latter parties of engaging in deceptive marketing practices, in breach of section 10 of the Competition Act 2010. The CCP investigation concluded that SM Foods and Volka Foods engaged in the practice of free riding through the use of trademarks, product labeling and packaging. complainants without permission. This act of unauthorized use, prima facie, violated Section 10 of the Act. Subsequently, CCP, based on the findings and recommendations of the investigation reports, issued show cause notices to SM Food Makers Limited and Volka Foods.

After receiving the show cause notices, SM Food Makers Limited challenged the legality of the notices in the High Court of Lahore, Multan Bench Multan. Subsequently, three separate writ motions were filed by SM Food Makers, urging the court to quash the show cause notices. After thorough deliberation and hearing of arguments from all parties involved, the Honorable High Court of Lahore, Multan Bench Multan, dismissed all constitutional petitions and referred the matter to the CCP, recognizing it as the initial forum to deal with the competition issues. The court ordered the petitioner, SM Food Makers Limited, to file a response to the show cause notices within 30 days and raise all objections to the CCP.

Furthermore, the honorable court pointed out that the competition laws provide a remedy through the appellate forum, which has jurisdiction to deal with all factual and legal disputes related to the case. Therefore, the court deemed it inappropriate to issue a final judgment at this stage without following due process. This court ruling allows the CCP to pursue the case and conduct hearings on the aforementioned complaints. The ruling upholds the principles of fair competition and demonstrates the courts’ confidence in the CCP as the competent authority to determine the outcome of such cases. As the proceedings resume, the CCP is expected to thoroughly examine the evidence and arguments presented by both parties, ultimately working to ensure a fair and equitable resolution under Pakistan’s competition law.

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