
The Pakistan Competition Commission (CCP) imposed Rs25 million as a penalty on Hyundai Nishat Motors for engaging in fraudulent marketing activities on the occasion of its Tucson SUV launch during 2020.
The Hyundai Tucson is a compact SUV that got a lot of attention in Pakistan for its design, features, and competitive pricing. CCP discovered that the launch event tricked consumers with ambiguous price offers.
Hyundai announced exclusive "introductory prices" of Rs4,899,000 for the GLS/FWD variant and Rs5,399,000 for the ULTIMATE/AWD version at a Facebook Live event.
These prices, said the CCP, were only applicable for less than 24 hours. The caption "for a limited time only" was also displayed in exceedingly small, poorly readable text.
Hyundai then, after this limited time, hiked the prices by Rs200,000 and deleted all of its posts and references to the previous rates on its platforms.
The CCP termed this as "bait advertising," when a firm lures shoppers with cheap prices that are readily withdrawn. It stated Hyundai had not clearly explained to consumers the prices would change so soon. This caused people confusion and disillusionment as they were intending to reserve the Tucson.
Moreover, the CCP also mentioned that Hyundai adheres to better advertising standards in other nations. It underlined that Pakistani consumers are also entitled to fair and truthful marketing.
This is the fifth time CCP has imposed a fine on an automaker for unfair business practices over the past few years. It stated that the Rs25 million penalty conveys a clear message that deceptive advertisements in Pakistan will not be tolerated.