The Competition Commission of Pakistan (CCP) has fined Hyundai Nishat Motor (Pvt) Limited Rs25 million for misleading advertising during the launch of its Hyundai Tucson SUV in 2020.
According to the CCP, Hyundai Nishat announced “introductory prices” for the new vehicle without clearly stating that the offer would last for less than 24 hours. Many customers believed the prices would be available for a longer time.
However, soon after the launch, the company stopped bookings and increased the car’s price by Rs200,000. They also removed the original pricing details from their website and online platforms.
This marketing approach was labeled as “bait advertising” by the CCP. Bait advertising is when a company attracts customers with a special offer but then quickly changes it, often leading consumers to pay a higher price than expected. The CCP said this kind of strategy goes against Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices.
The commission emphasized that such behavior misleads customers and gives companies an unfair advantage in the market. They stated that businesses must be honest and clear when advertising products, especially when offering special prices or promotions.
By imposing this fine, the CCP aims to warn other companies in the auto industry and beyond. The message is clear: companies must maintain transparency and truth in their advertisements or face serious consequences.
This case also highlights the importance of consumer protection. When customers are misled by unclear or dishonest promotions, they often end up making decisions based on incomplete information. Regulatory bodies like the CCP help ensure fair competition and protect buyers from such practices.
In the future, companies are urged to make disclaimers clearly visible and ensure all promotional terms are explained in a way customers can easily understand.
