1.

Deceptive marketing refers to any marketing strategy that involves misleading or false
information about a product or service. This can include false claims about the benefits of a
product or service, misleading pricing information, or misleading advertising in general.
 The Competition Act 2010 of Pakistan addresses deceptive marketing practices
under its provisions related to unfair trade practices. According to the Act, deceptive
marketing practices that mislead consumers or harm the interests of competitors
are prohibited.

Section 10 of the Competition Act 2010 prohibits deceptive marketing practices,

including false or misleading representations about the characteristics, benefits, or
performance of a product or service. It also prohibits false or misleading
representations about the price, availability, or sponsorship of a product or service.

Under the Act, the Competition Commission of Pakistan (CCP) has the authority to
investigate and take action against businesses engaged in deceptive marketing
practices. The CCP can impose penalties, such as fines, on businesses found guilty of
such practices. In addition, the Act allows individuals who have suffered harm as a
result of deceptive marketing practices to file complaints and seek compensation.

It is important for businesses operating in Pakistan to comply with the provisions of

the Competition Act 2010 to avoid legal consequences and maintain fair
competition in the market.
Exmaples:
 Product Misrepresentation. ...
 Hidden Fees. ...
 Business Misrepresentation. ...
 Fillers. ...
 Misuse of the Word “Free” ...
 Manipulative Testimonials and Endorsements. ...
 Researching and verifying product claims. ...
 Seeking reliable sources and reviews.

Consequences for Consumers:

Financial Loss: Deceptive marketing can lead consumers to make
purchases based on false or misleading information, resulting in
financial losses when products or services don't meet their
expectations.

Health and Safety Risks: In cases where deceptive marketing involves

health or safety-related claims, consumers may face risks to their well-
being if products or services are not as advertised.

Loss of Trust: Deceptive marketing erodes consumer trust in the brand

or company responsible, leading to a loss of loyalty and potential
damage to the brand's reputation.

Legal Recourse: Consumers may have legal recourse to seek

compensation for damages incurred due to deceptive marketing
practices, such as through class-action lawsuits or individual claims.

Psychological Impact: Being misled by deceptive marketing can cause

stress, frustration, and feelings of betrayal among consumers,
impacting their overall well-being.

Consequences for Businesses:

Legal Penalties: Businesses found guilty of deceptive marketing

practices may face fines, penalties, or legal sanctions imposed by
regulatory authorities or through civil litigation.

Reputation Damage: Deceptive marketing can tarnish a business's

reputation, leading to negative publicity, loss of customer trust, and
decreased sales in the long term.

Loss of Customers: Consumers who feel deceived by a business's

marketing tactics are likely to take their business elsewhere, resulting
in a loss of revenue and market share.

Regulatory Scrutiny: Businesses engaged in deceptive marketing

practices may attract increased regulatory scrutiny, leading to ongoing
monitoring, investigations, and potential restrictions on their
operations.

Financial Consequences: In addition to fines and legal fees,

businesses may incur costs associated with rectifying deceptive
marketing campaigns, such as issuing refunds, recalls, or
implementing corrective advertising.
 Civil Lawsuits: In cases where consumers suffer harm or financial loss
due to deceptive marketing, businesses may face civil lawsuits seeking
damages, which can result in costly settlements or judgments against
them.
Examples
Multinational Johnson & Johnson is known for its wide range of consumer
goods, medical devices, and pharmaceutical products. Among its most iconic
products is Johnson's Baby Powder, a staple in many households for
decades.

Johnson & Johnson faced significant controversy over its Baby Powder
product. The company was accused of targeting specific demographics,
particularly African-American and overweight women, for its talc-based Baby
Powder. This strategy was pursued despite emerging concerns about the
product's safety.

Targeting specific demographics is a common marketing practice. However,

when it involves a product with potential health risks, it raises ethical
concerns. Companies must balance marketing strategies with the
responsibility to provide accurate information about their products, especially
when there are health implications.

Numerous lawsuits were filed against Johnson & Johnson, alleging that its
Baby Powder and Shower to Shower products caused ovarian cancer or
mesothelioma. A Reuters investigation further revealed that small amounts of
asbestos had been found in the company’s talc products, information that was
not disclosed to the public or regulators. This led to a significant public
backlash and legal battles, with Johnson & Johnson facing thousands of
lawsuits that eventually prompted it to discontinue talc-based baby powder.

Unethical marketing
Unethical marketing refers to practices that violate accepted principles of fairness, honesty, and
transparency in advertising and promoting products or services.

In Pakistan, unethical marketing practices are addressed through various laws and regulations,
including:

The Competition Act, 2010:

The Competition Act prohibits anti-competitive practices, including deceptive marketing, that
may harm consumer welfare or restrict competition in the market. The Competition
Commission of Pakistan (CCP) is responsible for enforcing this law and investigating complaints
related to unethical marketing practices.
The Pakistan Electronic Media Regulatory Authority (PEMRA) Ordinance, 2002:

PEMRA regulates electronic media, including television, radio, and other electronic
communication platforms, to ensure that advertising content is truthful, not misleading, and
complies with ethical standards. It has the authority to take action against broadcasters found
guilty of airing deceptive advertisements.
The Pakistan Standards and Quality Control Authority (PSQCA) Act, 1996:

The PSQCA Act aims to ensure the quality and safety of goods and services available in the
market. It prohibits false claims or misrepresentations regarding the quality, standard, or safety
of products in marketing materials.
The Provincial Consumer Protection Laws:

Each province in Pakistan has its consumer protection legislation, which may include provisions
addressing unethical marketing practices. For example:
In Punjab, the Punjab Consumer Protection Act, 2005, prohibits unfair trade practices,
misleading advertising, and false representations.
In Sindh, the Sindh Consumer Protection Act, 2014, prohibits deceptive advertising and unfair
trade practices.
In Khyber Pakhtunkhwa, the Khyber Pakhtunkhwa Consumer Protection Act, 1997, addresses
deceptive marketing and unfair trade practices.
In Balochistan, the Balochistan Consumer Protection Act, 2003, prohibits false or misleading
representations regarding goods or services.
The Pakistan Penal Code (PPC):
Certain unethical marketing practices may also constitute criminal offenses under the PPC, such
as fraud, forgery, or cheating. For instance, intentionally making false representations to induce
someone to purchase a product or service could be considered fraud under the PPC.
EXAMPLE:
Fahad Mustafa q mobile ad
This advertisement was prohibited due to allegations that it promotes Western dating culture
and depicts alcohol consumption in the video.
Zomato ss, buzz ss

Illegal marketing
Illegal marketing refers to practices that violate laws and regulations governing advertising and
promotional activities.

Example: Google:

In 2019, Google was fined €1.49 billion by the European Commission for abusing its dominance
in online advertising through its AdSense platform. The Commission found that Google imposed
restrictive clauses in contracts with third-party websites, preventing them from displaying rival
search ads.

Illegal Marketing:

Illegal marketing refers to marketing practices that directly violate laws and
regulations governing advertising and promotional activities. These practices are
explicitly prohibited by legal statutes and can result in legal sanctions, fines, or
other penalties if businesses are found guilty of engaging in them. Examples of
illegal marketing include false advertising, misleading pricing tactics, or marketing
products without the necessary regulatory approvals.
Deceptive Marketing:

Deceptive marketing involves tactics that mislead or deceive consumers, often by

making false or misleading claims about a product or service's features, benefits,
or performance. While not all deceptive marketing practices may be explicitly
illegal, they can still be harmful to consumers and undermine trust in the
marketplace. Deceptive marketing may violate ethical standards or industry
guidelines, even if it doesn't breach specific laws. Examples include exaggerated
claims, hidden fees, or false endorsements.
Unethical Marketing:

Unethical marketing encompasses practices that violate accepted principles of

fairness, honesty, and transparency in advertising and promoting products or
services. These practices may not necessarily be illegal, but they can still be
morally wrong or harmful to consumers. Unethical marketing can include
exploiting vulnerable audiences, engaging in manipulative tactics, or prioritizing
short-term profits over long-term consumer welfare. While unethical marketing
practices may not always result in legal consequences, they can damage a
company's reputation and erode consumer trust over time.
In summary, illegal marketing involves practices that explicitly violate laws and
regulations, while deceptive marketing entails misleading or false claims that may
or may not be illegal but can harm consumers. Unethical marketing refers to
practices that breach accepted ethical standards, even if they are not explicitly
illegal, and can damage a company's reputation and consumer trust

Punishments for illegal marketing practices in Pakistan may include:

Fines: Monetary penalties imposed on businesses found guilty of violating marketing laws and
regulations.
Legal Action: Consumers or regulatory authorities may file lawsuits against businesses for
damages incurred due to illegal marketing practices.
Business Closure: In severe cases of non-compliance, authorities may revoke business licenses
or shut down businesses engaged in illegal marketing practices.
Compensation: Businesses found guilty of deceptive advertising may be required to
compensate consumers for losses or damages suffered as a result of their actions.
Criminal Charges: Individuals or businesses engaged in fraudulent or criminal marketing
practices may face criminal prosecution, leading to imprisonment or other legal penalties.