Competition Commission of Pakistan issues show-cause notice to lubricant importer

Chevron Pakistan Lubricants has lodged a complaint against M/s Hi-Tech Blending (Pvt) Limited, importer of ZIC Lubricants, resulting in the issuance of a show-cause notice to M/s Hi-Tech Blending by the Competition Commission of Pakistan (CCP), according to a report in the local media. The ZIC brand is owned by South Korea’s SK Lubricants.

Chevron Pakistan complained that M/s Hi-Tech Blending has been distributing false and misleading information to consumers, including a false and misleading comparison of goods lacking reasonable basis through their recent marketing campaign through broadcast commercial, brochures, and social media.

Following an inquiry, the CCP issued a show-cause notice to M/s Hi-Tech Blending (Pvt) for making unsubstantiated claims about its products and prima facie violating Section 10 of the Competition Act 2010. The Competition Act gives the Competition Commission legal and investigative instruments and powers to engender free competition in all spheres of commercial and economic activity, enhance economic efficiency, and to protect consumers from anti-competitive behaviour.

The Commission’s inquiry found that in order to promote their brand ZIC, Hi-Tech Blending launched a marketing campaign claiming its products to be superior over those of its competitors in terms of quality, efficacy, and fitness.

The inquiry report concluded that by making these claims, Hi-Tech Blending was prima facie violating Section 10 of the Competition Act by disseminating false and misleading information to consumers, thus harming the business interests of its competitors, including the complainant Chevron Pakistan.