The CCP fines 3M Pakistan Rs10 million after finding that a Scotch-Brite marketing video made a false or misleading comparison with a rival product, according to reports.
The order, reported in late September, was issued under Section 10(1) read with Section 10(2)(c) of the Competition Act, 2010. It follows a complaint from Colgate-Palmolive Pakistan, which said the video compared Scotch-Brite with its Max Scrub pad.
According to reports, the video showed both products being washed for 20 minutes. Max Scrub appeared visibly worn while Scotch-Brite looked in better condition. The commission found the comparison false or misleading and said 3M had not substantiated it.
Why the CCP fines 3M Pakistan over a product demo
3M challenged the authenticity of the video and said an employee had acted in a personal capacity. The commission rejected both arguments. It said the then regional sales manager acknowledged making the comparison, and that it was tied to his duties and to a campaign commissioned by the company.
It also rejected the argument that the demonstration was not advertising because it was shown to channel partners rather than consumers. The partners were engaged to promote Scotch-Brite and boost sales, the commission noted.
Colgate-Palmolive had submitted a third-party lab report that found the two products to be of similar quality. According to the order, 3M did not rebut it.
Penalty and compliance deadline
Along with the Rs10 million penalty, 3M must not repeat the same or similar conduct involving Max Scrub or any comparable product. It has 60 days to file a compliance report showing the penalty was paid. Non-compliance would attract a further Rs50,000 for every day from the date of the order.
The case adds to the commission’s recent action on deceptive marketing. In July, it imposed a Rs5 million penalty on a certification firm for using a name and logo resembling those of Bureau Veritas. Any appeal or response from 3M Pakistan to the latest order was not reported at the time of writing.
Source: The Nation
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