The Competition Commission of Pakistan (CCP) has sent a show cause notice to Warid Telecom for its delusive marketing practices.
Warid Telecom is advertising its ‘Minute’ Package on different media channels, in which, it has been publicized that, ‘Calls can be made to any network from ‘Warid Minute Package’ in Rs. 1.20/min’.
But according to the show cause notice Warid Telecom, through its Advertisement is prima facie spreading wrong or beguiling information to customers regarding the price, character and/or suitability for use of the product advertised in violation of Section 10 (2 – b) of the Act:
The advertisement does not unveil the tax to be charged on the advertised rate i.e. 1.20/min, hence the consumers are not informed about the actual rate/price to be charged from them;
Advertisement does not unveil that the call rates of Rs. 1.20/min can only be availed during 11.00 PM to 4.59 PM;
In addition to the above, Warid Telecom does not unveil the fact that the rate charged can be different for on-net and off-net calls during 5:00PM to 10.59PM i.e. Rs. 1.50/minute + tax for on-net calls and Rs. 1.70/minute + tax for off-net calls.
It has also been asserted that Warid Telecom through its Advertisement of Minute Package does not appear to show clearly to customers its true terms and conditions and there is probably to be an infringe of sub-section (1) of Section 10 in terms of clauses (b) of sub-section (2) of Section 10 of the Act.
Warid Telecom has been given the limit of 14 days to file its written answer and the case has been fixed for hearing on 9th of September, 2011.
Pak Updates
Warid Telecom is advertising its ‘Minute’ Package on different media channels, in which, it has been publicized that, ‘Calls can be made to any network from ‘Warid Minute Package’ in Rs. 1.20/min’.
But according to the show cause notice Warid Telecom, through its Advertisement is prima facie spreading wrong or beguiling information to customers regarding the price, character and/or suitability for use of the product advertised in violation of Section 10 (2 – b) of the Act:
The advertisement does not unveil the tax to be charged on the advertised rate i.e. 1.20/min, hence the consumers are not informed about the actual rate/price to be charged from them;
Advertisement does not unveil that the call rates of Rs. 1.20/min can only be availed during 11.00 PM to 4.59 PM;
In addition to the above, Warid Telecom does not unveil the fact that the rate charged can be different for on-net and off-net calls during 5:00PM to 10.59PM i.e. Rs. 1.50/minute + tax for on-net calls and Rs. 1.70/minute + tax for off-net calls.
It has also been asserted that Warid Telecom through its Advertisement of Minute Package does not appear to show clearly to customers its true terms and conditions and there is probably to be an infringe of sub-section (1) of Section 10 in terms of clauses (b) of sub-section (2) of Section 10 of the Act.
Warid Telecom has been given the limit of 14 days to file its written answer and the case has been fixed for hearing on 9th of September, 2011.
Pak Updates
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