The Competition Commission of Pakistan (CCP) has successfully recovered Rs30 million from Reckitt Benckiser Pakistan Limited, following a decision by the Competition Appellate Tribunal (CAT). The Tribunal upheld the CCP's earlier ruling that the company engaged in deceptive marketing practices regarding its product, Strepsils.
Background of the Case
The recovery stems from the Tribunal's verdict on an appeal against the CCP's order dated February 9, 2021. In that order, the Commission found Reckitt Benckiser guilty of disseminating misleading information to consumers about the nature and character of Strepsils. This violated Section 10(2)(b) of the Competition Act, 2010, which prohibits deceptive marketing.
Deceptive Marketing Practices
The Tribunal upheld the CCP's finding that the company created a false impression that Strepsils was a medicinal product for sore throat relief. This occurred despite the product's deregistration as a drug and its subsequent marketing as a non-medicated item. Currently, Strepsils is registered as a food item. The Tribunal directed the company to pay a penalty of Rs30 million and fully comply with corrective measures prescribed by the CCP within a stipulated timeframe.
Origin of the Complaint
The case originated from a complaint filed by M/s Square Distribution & Marketing System (Pvt) Limited. The complainant alleged that Reckitt Benckiser's advertising and marketing campaigns misled consumers about the product's status and characteristics.
Changes Implemented by the Company
In its decision, the Tribunal noted that Reckitt Benckiser had introduced substantial changes to the product's packaging and disclosures following the CCP's proceedings. These changes included prominently displaying the disclaimer "Non-Medicated" in both English and Urdu on the front of the packaging and blister packs. This move enhanced transparency for consumers.
CCP's Directives
As part of the CCP's directions, the company is also required to prominently publicize the change in the product's status from a medicated/drug category to a food category. This must be done through advertisements in widely circulated English and Urdu newspapers across Pakistan until full compliance is achieved.
CCP's Commitment to Consumer Protection
The recovery of the penalty reflects the CCP's continued efforts to safeguard consumer interests. The Commission ensures that businesses provide accurate, clear, and truthful information about their products and services. It remains committed to combating deceptive marketing practices and promoting transparency, informed consumer choice, and fair competition in the marketplace.
