Zubair Qureshi
Islamabad
The Competition Commission of Pakistan (CCP) has imposed Rs 150 million on Reckitt Benckiser Pakistan Ltd (Respondent) for violation of Section 10 of the Competition Act, 2010 for making advertising/marketing claims about its product ‘Strepsils’, which have been found capable of misleading and deceiving under the Act.
The order, passed by the bench comprising Rahat Kaunain Hassan, Chairperson and Ms. Bushra Naz Malik, Member, stated that the marketing claims by the Respondent can potentially deceive consumers with respect to the characteristics, formulation and intended use of ‘Strepsils’, hence, deceptive in nature within the meanings of Section 10(2) (b) of the Act.
In view of the findings for each of the violations of Section 10 read with Section 10 (2) (a) and (2) (b) related to deceptive marketing practices, the bench imposed a total penalty of PKR 150 million (Rs 75 million for each of the violations).
According to details, M/s Square Distribution & Marketing System (Pvt) Limited sent a formal complaint alleging that M/s Reckitt Benckiser Pakistan Limited has been disseminating misleading information to the consumers by creating an impression of its product ‘Strepsils’ as a drug for sore throat and cough.
It was further alleged that Strepsils was de-registered as drug when acquired by Reckitt from Boots in 2005, and then re-launched with the disclaimer, “Non-medicated Lozenges.”
However, the company made no effort to educate and inform the consumers regarding the discontinuation of medicinal ingredient in it.
The CCP’s enquiry concluded that the marketing campaign of the respondent appears to be deceptive in terms of Section 10 of the Act in general, read with sub-section 10(2) (b) of the Act which prohibits distribution of false and misleading information to consumers.
