CCP Penalizes Nishat Hyundai for Deceptive Marketing

ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a penalty of PKR 25 million on Nishat Hyundai Motors for employing deceptive marketing strategies during the launch of the Hyundai Tucson SUV in 2020.

The CCP initiated an inquiry following Hyundai’s Facebook Live event that showcased the Tucson 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 prices were valid for less than a day, with the disclaimer “for a limited time only” presented in a small font size, making it difficult to read. Subsequently, Hyundai increased the prices by PKR 200,000 and removed any reference to the initial prices from their online platforms.

The CCP determined that this marketing approach was misleading and unfair, stating that Hyundai failed to provide transparent terms for the offer, leading to consumer confusion. The commission labeled this as “bait advertising,” where an appealing low price is advertised but quickly retracted.

The CCP also noted that Hyundai adheres to superior marketing standards in other markets, emphasizing that Pakistani consumers are entitled to the same level of transparency.

This penalty serves as a clear message to businesses regarding the significance of honest advertising and the repercussions of deceiving the public.