Hyundai Nishat Motor receives a show cause notice for practicing ‘deceptive marketing’
Here's what really happened!
According to reports, the Competition Commission of Pakistan (CCP) has issued a show-cause notice to M/s Hyundai Nishat Motor (Pvt) Limited for prima facie, deceptive marketing practices in the marketing campaign for its new SUV ‘Hyundai Tucson’.
Concluding its inquiry on Tuesday, the CCP said:
We issued the show-cause notice to the company over alleged violation of Section 10 of the Competition Act, 2010.
What was the marketing campaign?
The auto company advertized the Hyundai Tucson’s introductory price in print media and on various social media platforms with a disclaimer, ‘for a limited period only.
The CCP took a suo moto notice of these advertisements. In these advertisements, the ‘introductory price’ was visibly printed in large font size. However, the ‘disclaimer’ was not easily noticeable as it was printed at a much smaller font size.
According to reports, CCP further noticed that the initial booking period for Hyundai Tucson with the ‘introductory price’ lasted for less than 24 hours, and then the price was raised by Rs. 200,000.
Within 24 hours of the initial bookings, the company declared that all units of Tucson at the introductory price were booked. Following the declaration, Hyundai Nishat Motor removed the introductory price list from its website, Facebook, and Instagram pages.
The CCP’s Office of Fair Trade (OFT) in its inquiry, stated:
The advertisement was problematic in the position that the disclaimer could potentially mislead the consumers. The ad left an overall impression that the company did not clearly indicate to consumers: (i) the period in which the introductory prices would apply, and (ii) the number of vehicles that were available at that price point.
Therefore, the inquiry willed the CCP to serve a show-cause notice to the M/s Hyundai Nishat Motor (Pvt) Limited company. Sources state that the company has been given 14 days to respond to the notice.
It should be noted that the CCP is mandated under the Competition Act to ensure fair competition in all spheres of commercial and economic activity. The purpose of the CCP is to enhance economic efficiency and to protect consumers from deceptive marketing practices.
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