Hyundai Nishat is a well-known brand in Pakistan that has recently launched the Hyundai Tucson Hybrid. However, back in 2020, it launched the Hyundai Tucson during a live event, which is now regarded as a ‘deceptive marketing tactic’ by the Competition Commission of Pakistan.
Considering this, the authority has fined Hyundai Nishat a massive Rs. 25 million penalty. Knowing this, you might be wondering the reason for this massive fine on Hyundai Nishat. Let’s explore in the blog!
Reasons For the Massive Fine on Hyundai Nishat
The following are some reasons for the massive fine on Hyundai Nishat:
- Hyundai Nishat launched the Hyundai Tucson with different introductory prices for its variants. The Hyundai Tucson GLS/FWD variant had an introductory price of Rs. 4,899,000, whereas the Hyundai Tucson Ultimate/AWD was priced at Rs. 5,399,000.
- These prices were only valid for less than 24 hours.
- The company mentioned that these prices are ‘for a limited time only’ in a way that was hard to notice and read.
- Later, the brand increased the prices of the variants of the Hyundai Tucson by Rs. 200,000 each.
- Not just this, the brand also removed the original prices from the website and social media pages.
As per the reports, this misleading and bait advertising of the Hyundai Tucson has led the Competition Commission of Pakistan to fine Hyundai heavily.
Final Verdict
In conclusion, it was noted by the commission that launch prices were applicable for a very short period and for advertising purposes to attract more people. They consider it misleading, which is the reason the company has been fined heavily. This action also serves as a warning to the other companies that use misleading advertising and highlights the importance of honest marketing practices.
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