Background Facts:

M/s Reckitt Benckiser Pakistan Limited filed a complaint against M/s S.C. Johnson & Son Pakistan Limited alleging that the Respondent is violating Section 10 of the Competition Act, 2010 by marketing itself to be “No. 1 in Pakistan” with respect to all of its products under the brand ‘Baygon’.

The Commission considered whether claims such as “No. 1 in Pakistan” and “Brand of the Year 2010” violate Section 10 or are merely puffery? The Commission noted that generally puffery is intended to base on an expression of opinion not made as a representation of fact. Puffing statements are, while factually inaccurate; so grossly exaggerated that no ordinary consumer would rely on them. Hence puffing is generally vague and unquantifiable. On the other hand, the claim of being no. 1 was held to be specific and quantifiable and, as such, could not be considered puffery. Similarly, being brand of the year would also not support this marketing campaign.

ORDER:

Based on the submissions the Commission is of the view that the final order could have taken time. Also, considering the subsequent development and statements made by the parties during the hearing, such a situation could have warranted issuance of an interim Order under Section 32 of the Act. However, the Respondent as per its commitment has stopped its marketing campaign under review and has also withdrawn all the materials regarding the marketing campaign under review from the public domain. The Respondent is reprimanded not to indulge in deceptive marketing practices in future as it shall entail penal consequences and it shall continue to refrain from making the subject claims in the present form in their advertisements or marketing campaigns.

The commission in terms of the commitment made by the Respondent’s counsel and the statement made by counsel for the Complainant during the hearing, therefore, deem it appropriate to dispose of the show cause notice no. 46/2011 issued to the Respondent.