The Competition Commission of Pakistan (CCP) has imposed a PKR 10 million penalty on 3M Pakistan (Private) Limited for deceptive marketing of its Scotch-Brite product.
The case followed a complaint by Colgate-Palmolive Pakistan Limited over a marketing video comparing Scotch-Brite with its Max Scrub product. The video showed both products being washed for 20 minutes, after which Max Scrub appeared significantly deteriorated while Scotch-Brite remained in comparatively better condition.
Following an enquiry and a Show Cause Notice, the CCP found that 3M Pakistan had failed to provide sufficient evidence to substantiate the comparison. The Commission also noted that Muhammad Imran, then Regional Sales Manager of 3M Pakistan, acknowledged making the demonstration. The CCP determined that his conduct was connected to his official responsibilities and a marketing campaign commissioned by the company.
The Commission rejected 3M Pakistan’s argument that the demonstration was not advertising because it was shown to third-party channel partners rather than directly to consumers. According to the CCP, these partners were involved in promoting Scotch-Brite, increasing its market visibility and boosting sales.
The CCP also considered a third-party laboratory report submitted by Colgate-Palmolive, which found the two products to be of similar quality. The report was not rebutted by 3M Pakistan during the proceedings.
The penalty was imposed under Section 10(1) read with Section 10(2)(c) of the Competition Act, 2010, which covers false or misleading comparisons in advertising.
The CCP has directed 3M Pakistan to avoid repeating the same or similar marketing practices involving Max Scrub or comparable products from other companies. The company must also submit a compliance report confirming payment of the penalty within 60 days.
Failure to comply with the order will result in an additional PKR 50,000 daily penalty from the date of the order.
