The Competition Commission has examined the market practice in Pakistan's paints industry of placing redeemable coupons in paint packaging. The question arose as to whether the practice of inserting coupons into paint packaging without due disclosure constituted a deceptive marketing practice under Section 10 of the Competition Act.
The Competition Commission has passed an order on a show cause notice that was issued to a premium cinema operator for prima facie violation of the rules on abuse of dominant position by tying-in. The findings on the cinema operator's promotion, which required customers to buy a food coupon with their ticket, demonstrate the dangers of unintentional infringement.
Certain key amendments that were brought into effect by the provisions of the Finance Act 2008 continue to affect commercial activity in Pakistan. The main aim of the amendments to the Companies Ordinance 1984 seems to be to enhance the Securities and Exchange Commission's powers and to make companies more accountable to it.
The Corporate Law Review Commission - a body established by the Securities and Exchange Commission of Pakistan to carry out a thorough review of the Companies Ordinance 1984 - has started redrafting the ordinance. The aim is to reassess the objectives of the ordinance in light of the economic environment, and facilitate the creation and maintenance of a liberal, deregulated and efficient corporate sector.