Press Release Detail

Islamabad,  

: The Competition Commission of Pakistan (CCP) has recovered Rs30 million from Reckitt Benckiser Pakistan Limited following the Competition Appellate Tribunal’s (CAT) decision upholding CCP’s finding that the company had engaged in deceptive marketing of its product.

The recovery follows the Tribunal’s decision on an appeal against CCP’s order dated 9 February 2021, in which the Commission had found the company guilty of disseminating misleading information to consumers regarding the nature and character of the product, in violation of Section 10(2)(b) of the Competition Act, 2010.

In its judgment, the Tribunal upheld CCP’s finding that the company had engaged in deceptive marketing practices by creating the impression that Strepsils was a medicinal product for the relief of sore throat despite its deregistration as a drug and its subsequent marketing as a non-medicated product. The product is currently registered as a food item.

The Tribunal directed Reckitt Benckiser to pay a penalty of Rs30 million and to fully comply with the corrective measures prescribed by the Commission within the stipulated timeframe.

The case originated from a complaint filed by M/s Square Distribution & Marketing System (Pvt.) Limited, which alleged that the company’s advertising and marketing campaigns were misleading consumers regarding the product’s status and characteristics.

In its decision, the Tribunal also noted that the company had introduced substantial changes to the product’s packaging and disclosures following CCP’s proceedings. These changes included the prominent display of the disclaimer “Non-Medicated” in both English and Urdu on the front of the packaging and blister packs, enhancing transparency for consumers.

As part of 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 through advertisements in widely circulated English and Urdu newspapers across Pakistan until full compliance is achieved.

The recovery of the penalty reflects CCP’s continued efforts to safeguard consumer interests and ensure that businesses provide accurate, clear, and truthful information regarding their products and services. The Commission remains committed to combating deceptive marketing practices and promoting transparency, informed consumer choice, and fair competition in the marketplace.



© CCP 2024, Competition Commission of Pakistan ©All rights reserved