The Competition Commission of Pakistan (CCP) has recently fined Reckitt Benckiser (RB) Pakistan Rs. 15 million. This penalty addresses violations of Section 10 of the Competition Act of 2010. The fine follows concerns about misleading claims made in Dettol Soap advertisements.
Background of the Case
Allegations of Misleading Advertising
Unilever Pakistan filed a complaint against RB. The complaint accused RB of deceptive advertising for Dettol Soap. Specifically, the ads claimed that the soap kills up to 99.9% of germs and offers 24-hour protection against germs, cold, and flu. Unilever argued that these claims were unverified and misleading.
CCP’s Findings
The CCP investigated the claims and found RB’s advertisements lacking in evidence. The Commission determined that RB’s claims were misleading and not based on reliable information. This could potentially harm both competitors and consumers by spreading false information about the product’s effectiveness.
Tribunal’s Ruling
Penalty Imposed
In December 2019, the CCP initially fined RB Rs. 30 million. RB then appealed the decision to the Competition Appellate Tribunal. The Tribunal agreed with the CCP’s findings but reduced the fine to Rs. 15 million.
The CCP’s decision highlights the importance of accurate advertising. Companies must support their claims with evidence to avoid such penalties. This case serves as a reminder of the need for honesty in marketing practices and the CCP’s role in upholding fair competition.
