Tribunal Affirms CCP’s Order Against Hyundai Nishat, Reduces Penalty

The Competition Appellate Tribunal (CAT) has validated the ruling issued by the Competition Commission of Pakistan (CCP) concerning Hyundai Nishat Motors’ misleading marketing practices during the 2020 launch of the Hyundai Tucson SUV, as per a recent CCP announcement.

However, the Tribunal has opted to lower the financial sanction initially imposed by the CCP from Rs25 million to Rs5 million.

Background of the Case

The CCP launched its inquiry following a Facebook Live event hosted by Hyundai Nishat on August 11, 2020. During this event, the company promoted ‘introductory prices’ of Rs4,899,000 for the GLS/FWD model and Rs5,399,000 for the ULTIMATE/AWD model.

Deceptive Practices
  • The investigation revealed that these special prices were available for a period shorter than 24 hours.
  • The limited-time availability was not clearly conveyed to the consumers.
  • Following the brief booking window, Hyundai increased the prices of the vehicles by Rs200,000.
  • Original pricing details were removed from both its website and social media platforms.

The CCP determined that these actions constituted ‘bait advertising,’ thereby contravening Section 10 of the Competition Act, 2010. It was also pointed out that Hyundai adheres to more transparent marketing standards in other countries, suggesting that Pakistani consumers are entitled to the same level of honesty.

After concluding the investigation, the CCP delivered its verdict in April 2025, imposing a penalty of Rs25 million on Hyundai Nishat. Subsequently, Hyundai Nishat appealed the decision before the Tribunal.

Tribunal’s Decision

The Tribunal concurred that the price disclaimer lacked sufficient clarity and that the marketing approach was, in fact, misleading to consumers. As a result, the Tribunal has upheld the CCP’s verdict but has adjusted the monetary penalty for Hyundai Nishat to Rs5 million.