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05 July 2018
The Competition Commission conducted an enquiry into Kaymu.pk (an online shopping platform) following a complaint received by an individual consumer and found that Kaymu.pk had been involved in deceptive marketing practices in violation of Section 10 of the Competition Act 2010 (for further details please see "Competition Commission finds that online shopping platform violates Competition Act").
While relying on Kaymu.pk's assurance that it would act as a mediator in the event of any dispute arising between buyers and third-party sellers, the complainant ordered a wristwatch from a third-party vendor through Kaymu. The complainant alleged that Kaymu had failed to take any responsibility to resolve the matter when a different wristwatch was delivered.
As a result of its findings – and in the interest of the public at large – the Competition Commission initiated proceedings and issued a show cause notice to Kaymu on the ground that:
Without deliberating on the merits of the case, the Competition Commission focused on the maintainability of the proceedings under the Competition Act, issued the show cause notice and observed the following:
Any natural or legal person, governmental body including a regulatory authority, body corporate, partnership, association, trust or other entity in any way engaged, directly or indirectly, in the production, supply, distribution of goods or provision or control of services and shall include an association or undertakings.
The Competition Commission found that the enquiry did not comply with Section 37(2) of the Competition Act and, as a result, proceedings could not be initiated against Kaymu. The enquiry report and the show cause notice were thus set aside and the complaint was remanded back to the commission registrar. However, the order also stated that it must not preclude the commission from authorising a de novo enquiry into the matter in accordance with the law.
For further information on this topic please contact Sanaya F Vachha at Vellani & Vellani by telephone (+92 21 3580 1000) or email (email@example.com). The Vellani & Vellani website can be accessed at www.vellani.com.
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