CAT upholds CCP’s findings against PREMA milk for deceptive marketing, reduces fine to Rs5m

ISLAMABAD: The Competition Appellate Tribunal (CAT) has upheld the findings of the Competition Commission of Pakistan (CCP) against M/s At-Tahur (Pvt.) Limited, the processors and marketers of PREMA Milk, for engaging in deceptive marketing practices in violation of Section 10 of the Competition Act, 2010.

The case originated from a complaint filed by the Pakistan Dairy Association (PDA), alleging that PREMA disseminated misleading claims on social media after the Supreme Court’s 2016 judgment on milk quality. PREMA’s marketing campaign implied that all other dairy products, except PREMA’s, were unfit for human consumption—an assertion found to lack reasonable basis and capable of harming competitors’ business interests.

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Following an inquiry, CCP concluded that the company had violated Section 10(1), read with Section 10(2)(a), (b), and (c) of the Act. It imposed a penalty of PKR 35 million and directed PREMA to issue a public clarification about its misleading claims.

While upholding CCP’s findings, CAT observed that the penalty amount is excessive and reduced the fine amount from PKR35 million to Rs5 million.