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07 December 2017
Pursuant to a complaint by an individual, the Competition Commission initiated an enquiry into six fruit juice manufacturers for misleading consumers and engaging in deceptive marketing practices under the Competition Act 2010.
The complaint alleged that the respondents had been involved in the distribution of false and misleading information during the marketing of their products by claiming that the juices they manufactured were 100% pure and natural and contain no additional sugar, colours or preservatives. Additionally, it was alleged that these claims lacked a reasonable basis and were capable of harming the business interests of other undertakings engaged in similar business. It was further alleged that products which are 100% pure and natural do not require the ingredients as listed on the packaging of the fruit beverages available in the market.
The enquiry committee investigated the matter to ascertain whether:
The enquiry committee established that on the basis of their content, fruit beverages have been categorised as juices, nectars and still drinks. The committee's initial findings revealed that the respondents had made unjustified claims about their products in the following manner, which amounted to the distribution of false and misleading information:
The enquiry committee concluded that the respondents' marketing of their fruit juice brands to consumers using unjustified claims amounted to the distribution of false and misleading information to the general public, which could harm the business interests of other undertakings engaged in similar business within the same industry.
The committee recommended that, in the interest of the general public, proceedings be initiated against the respondents for violation of Section 10 of the Competition Act.
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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