CCP appreciates compliance by Pak Suzuki Motor Company Limited


ISLAMABAD (PR): Since establishment (almost 6 years), Competition Commission of Pakistan (CCP) is focused on corrective behavior. A positive outcome is that businesses are rectifying their anti-competitive practices/behavior and are integrating competition compliance into their corporate governance framework.

Earlier concerns were raised by customers regarding the Booking Order issued by car manufacturer companies in Pakistan for purchase of a new car. Scrutiny of booking order revealed that terms and conditions mentioned therein appear to be unfair trading conditions imposed on customers in terms of Section 3(3)(a) of the Competition Act, 2010. Aforementioned competition concerns were shared with M/s Pak Suzuki Motor Company Limited and M/s Indus Motor Company Limited.

Pak Suzuki promptly responded to address the concerns raised and revised the terms and conditions of its booking order in compliance of the provisions of the Competition Act. Terms and conditions which have been rectified by Pak Suzuki include the right of cancellation of booking which was not available to customer before and change in design and specifications without notice to customer only to the extent of minor changes as the car manufacturers were earlier enjoying arbitrary right to change design and specifications without notice to customers. Similarly, price of car will not be changed at the time of delivery except change in government taxes and levies instead of right of car manufacturer to change the price anytime before the car is delivered to customer. In case the car manufacturer cannot make available the color opted by the customer at the time of booking, the customer will be given choice of two colors available at that

time and if still car is not made available in one of selected colors then the customer will have the right of cancellation without any penalty. Further,  in case of dispute the customer has been given right to take the matter to an arbitrator instead of accepting conclusive decision by the Chief Executive Officer of the company.

On the other hand M/s Indus Motor Company limited which has been issued Show Cause Notice in this regard has requested the Bench to revise the terms and conditions of its booking order.

CCP is geared to ensure that businesses must have confidence that competition law is there to assure them a level playing field to grow their business. Shaping a constructive, effective and responsive competition regime will require the commitment and contribution by all parties. CCP is appreciative of prompt response and diligent efforts by the Pak Suzuki to resolve the issue in compliance with the provisions of the Competition Act.