CCP slaps Hyundai distributor with fine over 2020 SUV launch ‘bait’ tactics

By Staff Reporter

ISLAMABAD: The antitrust regulator fined Nishat Hyundai Motors Rs25 million for misleading consumers during the 2020 launch of its Tucson SUV, accusing the automaker of using “bait advertising” to inflate demand before abruptly raising prices.

The Competition Commission of Pakistan (CCP) said in a ruling Wednesday that Hyundai’s local unit promoted “introductory prices” of Rs4.9 million and Rs5.4 million for two Tucson variants during a Facebook Live event in November 2020.

However, the discounted rates—valid for under 24 hours—featured disclaimers in “illegibly small font,” while subsequent price hikes of Rs200,000 per vehicle were not publicly disclosed.

“The Commission found that the special prices were only valid for less than 24 hours, and the disclaimer “for a limited time only” was printed in very small, hard-to-read text,” CCP said in a statement. “Right after the short booking window, Hyundai increased the prices by PKR 200,000 and removed all mentions of the original prices from their website and social media pages.”

The regulator ruled that auto manufacturer’s marketing strategy was misleading and unfair. “Hyundai didn’t clearly explain the terms of the offer and created confusion among customers,” it said. “They called it a case of “bait advertising”, where consumers are attracted with a low price that disappears almost immediately.”

Regulators highlighted the contrast between Hyundai’s Pakistan campaign and its adherence to stricter advertising norms in other regions, where disclaimers on time-bound offers are mandated to be clearly legible.

“Hyundai follows better marketing practices in other countries, and Pakistani consumers deserve the same standards.”
Hyundai returned to Pakistan in 2020 and set up a car assembly plant in Pakistan in a joint venture with local textile firm Nishat Mills.

Hyundai and South Korea’s Kia Motor used to assemble cars in Pakistan until 2004 but withdrew after their local partner Dewan Farooque Motors Limited went bust.