ISLAMABAD: The Lahore High Court’s Multan bench has authorised the Competition Commission of Pakistan (CCP) to resume proceedings in three cases of deceptive marketing.

In its decision, the court recognised the commission as the primary authority to address competition-related matters, affirming its status as the original forum for such issues, the CCP said in a statement on Saturday.

The cases originated from inquiries based on formal complaints lodged by three companies — Ismail Industries, Hilal Foods, and English Biscuit Manufacturers — against S.M. Food Makers Ltd and Volka Foods.

The complainants accused S.M. Food and Volka of deceptive marketing, contravening Section 10 of the Competition Act, 2010.

Upon inquiry, the CCP found that S.M. and Volka did free riding by utilising trademarks, product labelling and packaging of the complainants without authorisation, thus violating Section 10, which defines deceptive marketing.

However, when the commission issued show-cause notices to the two companies, they the legality of the notices before the LHC’s Multan bench.

Subsequently, three separate writ petitions were filed by S.M. Food Makers, urging the court to nullify the show-cause notices.

However, after hearing arguments from all parties, the high court dismissed all the constitutional petitions and referred the matter back to the CCP, recognising it as the original forum to address such issues.

The court directed the petitioner, S.M. Food Makers Ltd, to file a response to the show-cause notices within 30 days and raise all objections before the CCP.

It also emphasised that competition laws offered a remedy through the appellate forum, which was competent to address all factual and legal disputes related to the case.

Consequently, the court deemed it inappropriate to render a definitive judgement at this stage without undergoing due process.

The CCP said the court ruling had enabled it to proceed with the case and conduct hearings into the complaints.

Published in Dawn, May 21st, 2023