The Competition Commission of Pakistan (CCP) has issued show cause notice to online shopping platform, ‘Kaymu.pk’ for deceptive marketing practices with regard to the resolution of disputes between buyers and sellers, return policy, payment and shipping methods, and vague terms and conditions thus deceiving consumers in violation of Section 10 of the Competition Act, 2010.
CCP conducted an enquiry upon receiving a complaint from a Pakistani citizen alleging that ‘Kaymu.pk,’ is involved in deceptive marketing practices by committing different violations.
According to the complainant, the online shopping website guarantees a safe and highly cooperative platform for buyers and sellers. However, in contrast to the stated facts on ‘Kaymu.pk,’ it rather allows the sellers to commit fraud and mislead customers with regard to the services provided while placing an order as well as in after sale services.
After analysing the facts, the enquiry report found ‘Kaymu.pk’ of deceiving its customers via self-contradictory information provided on the website and by omission of fair warnings with regard to the seller’s return policy. Moreover, as against the stated claims, the website fails to act as a true mediator by absolving itself from confirming the reliability of the sellers on its website.
The enquiry also found that ‘Kaymu.pk’ claims to offer multiple delivery and shipping options to the customers. However, in reality, those options are not available to the consumers.
The enquiry report concluded that ‘Kaymu.pk’ is, prima facie, involved in disseminating false and misleading information to the customers , which is also capable of harming the business interest of other competitors in the business of online shopping, thus violating Section 10 of the Competition Act.
The CCP’s Office of Fair Trade (OFT) is vigilant to the marketing practices of all businesses to prevent deceptive marketing in order to protect the consumers from financial losses. With the rise in volume of e-commerce activity in Pakistan, CCP is particularly focused to guard the interests of consumers and genuine sellers from deceptive marketing practices.