CCP Issues Show Cause Notice to online retailer Kaymu for Deceptive Marketing

Online Shopping Retailer Kaymu

The Competition Commission of Pakistan (CCP) has issued show cause notice to an online shopping platform, Kaymu(dot)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 a renowned platform for online shopping in Pakistan, Kaymu(dot)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 onKaymu(dot)pk, it rather allows the sellers to commit fraud and mislead customers about the services provided while placing an order as well as in after sale services.

After analyzing the facts, the inquiry report found Kaymu(dot)pk of deceiving its customers via self-contradictory information provided on the website and by the 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 inquiry also found that Kaymu(dot)pk claims to offer multiple delivery and shipping options to the customers. However, in reality, those options are not available to the consumers.

The inquiry report concluded that Kaymu(dot)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.

Yesterday, CCP issued a notice in favor of Nayatel, in a case against Bahria Town where real estate company refused its residents any other CIT service other than PTCL. Bahria Town was found to have abused its power, and thus a fine of PKR 2 million has been imposed on it.

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