False marketing : CAT upholds Commission’s decision

ISLAMABAD: The Competition Appellate Tribunal (CAT) has upheld a significant decision by the Competition Commission of Pakistan (CCP), confirming that a pharmaceutical company misled hospitals by falsely marketing a life-saving product for kidney patients. The Tribunal dismissed the appeal of 3N LIFEMED Pharmaceuticals and endorsed the Commission’s finding of deceptive marketing—though it reduced the monetary penalty from Rs20 million to Rs2 million.
The CCP had received a formal complaint from M/s Renacon Pharma Limited, which accused 3N LIFEMED of using fake quality certifications to market Haemodialysis Concentrate, a crucial product used in the treatment of kidney failure. The CCP’s investigation revealed that 3N LIFEMED had falsely claimed its product was certified with Conformité Européene (CE) and Quality Management System (QMS) marks, obtained from a non-accredited firm based in Islamabad. These certifications, although voluntary under Pakistani laws, are widely seen as benchmarks of quality and are often required in public procurement tenders.
The misleading claims were found to have misinformed hospitals and patients, creating a false impression of superior safety and efficacy in a sensitive market segment. Haemodialysis Concentrate is classified as a medical device by the Drug Regulatory Authority of Pakistan (DRAP) and is used to create dialysis fluid, which must closely match the patient’s natural blood chemistry to prevent complications.
During the CAT proceedings, 3N LIFEMED’s counsel argued that the company ceased using the disputed markings after receiving a show-cause notice from CCP and insisted that the product was DRAP-approved. They also attempted to shift blame to SIMS-AGS, the Islamabad-based company that issued the certifications, whose international accreditation was revoked in 2020.
However, CCP’s counsel countered that 3N LIFEMED, as a pharmaceutical company, should have known that such certifications cannot simply be purchased but must be earned through rigorous inspections. The Tribunal agreed with CCP’s position, observing that while such certifications may not be legally mandatory, they influence procurement decisions and public trust—and misusing them constitutes deception.
In light of 3N LIFEMED’s financial capacity, the Tribunal reduced the penalty to Rs2 million but imposed a strict compliance deadline: failure to pay within ten days will attract an additional fine of Rs100,000 per day.