Latest News, Buying & Selling Guides for New and Used Cars

A Critical Look at PAAPAM’s Ads, Competition Act 2010, and the Truth About Car Quality in Pakistan

The Spark That Lit the Engine: Controversial Auto Ads in Newspapers

Some full page adverts have started to be featured recently in Pakistani newspapers.

The illustrations were striking, dramatic, and full of reproach:

1. SECOND-HAND IMPORT: FIRST-HAND CORRUPTION.

2. BUY a used import — WATCH your money rot.

These ads had the identity of the publisher placed at the bottom-left of the ad:

Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).

The message was clear; imported used cars are said to be harmful, corrupt and dangerous to the economy.

But was the message also misleading?

To respond to this, we consider the Competition Act 2010 Clause 10.

Clause 10 of Competition Act 2010: What Counts as Deceptive Marketing?

The Competition Act in Pakistan puts a solid line in the marketing ethics.

Clause 10 forbids the undertakings with entering into deceptive marketing practices especially in cases with:

1. False or misrepresentative information to the detriment of another business.

2. Misleading or untrue information to the consumer.

3. Misleading comparisons in advertising.

4. Unlawful misuse of trademarks or labelling.

These provisions exist so businesses cannot manipulate public opinion with exaggerated or baseless claims.

So the real question becomes:

Are the new advertisements made by PAAPAM misleading information or misleading comparison?

Let’s break it down.

Are the Ads Deceptive to the Consumers? A Closer Comparison

The ads imply that:

• Imported cars = corruption

• Cars imported lose their worth very fast.

• The imported cars are destructive to the economy.

• Imported cars are inferior

But reality lies on another very different map.

Hitting the Brakes: What the Market Actually Looks Like

The automobile market in Pakistan is segmented according to availability, technology and manufacturing capacity.

Let’s explore by categories:

660cc Cars (Small Hatchbacks)

Locally Assembled Option:

• Suzuki Alto

Imported Japanese Options:

1. Daihatsu Mira
2. Honda N-One
3. Honda N-WGN
4. Daihatsu Move
5. Suzuki Alto
6. Hustler

The imported 660cc cars will usually provide:

1. 4–6 airbags
2. Sophisticated radar braking systems.
3. Lane assist technologies
4. Parking sensors
5. Much more fuel efficient than local models.

These features are not common with local cars.

It would be easy to deceive the consumers with the claim that imported cars are of low value.

Sedans

Since Pakistan is already a manufacturer of sedans, these are not often imported from Japan.

The sedans are not even a direct competitor- but the advertisements suggest the generality of the damage caused by all imports.

Hybrids

The volume of local production of hybrids is very small, and therefore the consumers are turning to the Japanese imports:

• Toyota Prius

• Toyota Aqua

• Toyota C-HR

• Honda Vezel,

and many more.

These vehicles offer:

• High fuel efficiency

• Strong safety ratings

• Longer mechanical life

Once again, the messages in the ads “Buy a used Import - Watch your money rot” are counterfeeling the market trends that have been determined.

SUVs

Local SUV Options:

• Toyota Fortuner

Common Imports:

• Land Cruiser

• Prado

• Lexus

The premium imports are mainly consumed by consumers seeking quality and technology that cannot be found in the local models.

The Core Question: Are the PAAPAM Ads Breaching Clause 10?

According to Clause 10, the issues that appear are as follows:

1. Misleading Information to Consumers (Clause 10(b))

The advertisements imply that imported vehicles are necessarily associated with corruption, depreciation, and financial damages without any facts or even comparative statistics.

2. Misleading Comparison (Clause 10(c))

The implication of foreign cars being inferior when local cars usually do not have an airbag, sensor, quality of building, and safety system disproportions the comparison.

3. Harm to Business Interests (Clause 10(a))

The ads harm:

• Car importers

• Car dealers

• Showrooms

• Consumers that are dependent on safer imported substitutes.

In case of unproven claims, it can be classified under deceptive marketing that damages the rival enterprises.

Why Consumers Prefer Japanese Imports (The Facts, Not Fear)

Some of the facts not mentioned by the ads:

1. Japanese imports tend to be safety-enhanced.
2. Increased wear resistance and build strength.
3. Strong resale value in the past.
4. Lower maintenance issues
5. High-tech driver-assist systems.
6. Pakistan does NOT produce segments that have market substitutes.

Mostly, imported vehicles are safer to families rather than being more destructive.

Takeaway

New ads made by PAAPAM represent imported cars as dangerous, corrupt and economically devastating.

But the experience of consumers and the data on the market speak very differently!

Clause 10 of Competition Act 2010 is very relevant when advertisement borders exaggeration, fear-mongering or one-sidedness.

The success of any healthy market is based on option, reality, and healthy competition, and not on slogans that overshadow reality.

Before we declare imported cars as “corruption,” we must ask:

Are we being informed… or being influenced?

That question is the true engine driving this entire debate.

For legal advice and consultancy, special thanks to Adv Waqar Mushtaq Toor for providing clarity and expert guidance on the subject.

**PAAPAM**  “Pakistan Association of Automotive Parts & Accessories Manufacturers ”