The Competition Appellate Tribunal (CAT) has upheld the order of the Competition Commission of Pakistan (CCP) against Hyundai Nishat Motors for deceptive marketing during the launch of the Hyundai Tucson SUV in 2020, according to a CCP statement on Saturday.
However, the Tribunal reduced the penalty imposed by the CCP to Rs5 million from earlier Rs25 million.
CCP slaps Rs25mn fine on Hyundai for ‘misleading Tucson launch offer’
The CCP initiated an investigation following a Facebook Live event held by Hyundai Nishat on August 11, 2020. During the event, the company announced ‘introductory prices’ of Rs4,899,000 for the GLS/FWD model and Rs5,399,000 for the ULTIMATE/AWD model.
“However, the investigation revealed that these prices were only valid for less than 24 hours and the limited-time disclaimer was not clearly communicated to consumers.
“Additionally, after the short booking period, Hyundai increased the vehicle prices by Rs200,000 and removed the original pricing information from its website and social media,” the CCP statement read.
The CCP concluded that this was a case of ‘bait advertising’ and a violation of Section 10 of the Competition Act, 2010. It was also noted that Hyundai “follows more transparent marketing practices in other countries and Pakistani consumers deserve the same standards”.
Following the completion of the enquiry, the CCP issued its order in April 2025, imposing a penalty of Rs25 million on Hyundai Nishat. Subsequently, Hyundai Nishat challenged the order before the Tribunal.
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The Tribunal found that the disclaimer about the pricing was not clear enough and that the marketing did mislead consumers. As a result, the Tribunal upheld the CCP’s decision but reduced the financial penalty on Hyundai Nishat to Rs5 million.
