CCP Penalizes Nishat Hyundai Motors for Deceptive Marketing

The Competition Commission of Pakistan (CCP) has taken action against Nishat Hyundai Motors, imposing a penalty of PKR 25 million. This action was taken due to misleading advertising practices during the highly publicized launch of the Hyundai Tucson SUV in 2020.

The CCP initiated an inquiry following Hyundai’s significant Facebook Live broadcast. During the broadcast, the Tucson was promoted with introductory prices of PKR 4,899,000 for the GLS/FWD model and PKR 5,399,000 for the ULTIMATE/AWD model.

The investigation by the Commission revealed that the special pricing was valid for less than a day. The disclaimer indicating “for a limited time only” was printed in a small font, making it difficult to read. Immediately after the brief booking period concluded, Hyundai increased the prices by PKR 200,000 and removed all references to the original prices from their official website and social media platforms.

The CCP determined that this promotional strategy was deceptive and unjust. They stated that Hyundai failed to adequately clarify the offer’s conditions, which led to customer confusion. The commission labeled this a case of “bait advertising,” in which customers are lured in by a low price that vanishes quickly.

The Commission emphasized that Hyundai adheres to better marketing standards in other countries, suggesting that Pakistani consumers are entitled to the same level of transparency and ethical conduct.

This penalty serves as a strong message to businesses, emphasizing the significance of truthful advertising and the repercussions of deceiving consumers.