Business

Matter closed: Shangrila Private Ltd avoids CCP bullet

Company’s marketing campaign discontinued to ensure compliance.

Our Correspondent December 02, 2013

The representative of National Foods argued that, in terms of clear findings of the inquiry report and the retail audit survey conducted by AC Neilsen, it had a major market share while the market share of Shangrila was quite low. PHOTO: FILE

ISLAMABAD: The Competition Commission of Pakistan has accepted commitments made by Shangrila Private Ltd and disposed of the matter, which saw the latter being issued a showcause notice for its first encounter violation of section 10 under the Competition Act that deals with deceptive marketing practices.

The representative of National Foods argued that, in terms of clear findings of the inquiry report and the retail audit survey conducted by AC Neilsen, it had a major market share while the market share of Shangrila was quite low.

It was also submitted that even the Brands Foundation has not allowed Shangrila to use the ‘number one’ tagline.

On the other hand, the counsel, appearing on behalf of Shangrila, filed a Commitment under Regulation 30 of the Competition Commission (General Enforcement) Regulations 2007 that stated that the marketing campaign under question had already been discontinued and it will ensure compliance with the Competition Act and directions of the CCP.

Based on the previous commitment and the forthcoming approach of Shangrila, the CCP’s bench disposed of the matter while accepting the commitments filed by Shangrila ensuring compliance thereof and also directing to file the compliance report that none of the marketing material contains any deceptive claim — the ‘Pakistan’s number one’ used in the marketing campaign in question.

Consumer protection is a key area of the Competition Law Enforcement and CCP’s Office of Fair Trade (OFT) is set up to further the vommission’s objective of creating a business environment based on healthy competition and protecting consumers from anti competitive practices.

The matter was heard by a three-member bench, which included CCP Chairman Dr Joseph Wilson and members Mueen Batlay and Dr Shehzad Ansar.

Published in The Express Tribune, December 3^rd, 2013.

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