The Competition Commission of Pakistan (CCP) has fined 3M Pakistan Rs. 10 million for deceptive marketing of its Scotch-Brite product through a comparison with Colgate-Palmolive Pakistan Limited’s Max Scrub.
The case originated from a complaint filed by Colgate-Palmolive Pakistan over a Scotch-Brite marketing campaign that featured a video comparing the two products after they were washed for 20 minutes. The video showed Max Scrub deteriorating significantly while Scotch-Brite remained in comparatively better condition.
Following an inquiry, the CCP issued a show cause notice to 3M Pakistan. The company disputed the authenticity and reliability of the video and argued that the demonstration had been conducted by an employee in his personal capacity without company authorization.
The commission, however, found that Muhammad Imran, then regional sales manager of 3M Pakistan, had acknowledged making the comparison. Since the demonstration was connected to his official duties and took place as part of a marketing campaign commissioned by 3M Pakistan, the CCP held the company responsible for the conduct.
The CCP said comparisons between competing products can amount to false or misleading advertising when they lack a reasonable basis or recognizable substantiation. It found that 3M Pakistan had failed to substantiate the Scotch-Brite comparison.
The commission also considered a third-party laboratory report submitted by the complainant, which found the two products to be of similar quality after testing. The report was not rebutted by 3M Pakistan during the proceedings.
The CCP rejected 3M’s argument that the demonstration was not advertising because it was shown to third-party channel partners rather than directly to consumers. It noted that the partners were engaged to promote Scotch-Brite, increase its market visibility and boost sales.
The commission imposed the Rs. 10 million penalty for violating Section 10(1) read with Section 10(2)(c) of the Competition Act, 2010, relating to false or misleading comparisons of goods in advertising. It also directed 3M Pakistan not to repeat the same or similar conduct involving Max Scrub or other comparable products.
3M Pakistan has been given 60 days to submit a compliance report on payment of the penalty. Failure to comply will result in an additional penalty of Rs. 50,000 per day from the date of the order.
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