- Reckitt Benckiser (RB) Pakistan paid a Rs15 million penalty after the Competition Commission of Pakistan (CCP) found its advertising claims for Dettol Soap, stating 99.9% germ elimination and 24-hour protection, to be unsubstantiated and in violation of the Competition Act.
- The fine was initially set at Rs30 million but reduced to Rs15 million by the Competition Appellate Tribunal (CAT), which upheld the CCP’s findings and allowed RB 60 days to comply with the payment order.
- RB promptly deposited the penalty after receiving a recovery notice, demonstrating compliance with regulatory decisions and underscoring the importance of truthful advertising in Pakistan’s market.
Reckitt Benckiser (RB) Pakistan has paid a Rs15 million penalty to the national treasury in compliance with the Competition Commission of Pakistan’s (CCP) directive. This fine was imposed for making unsubstantiated claims in its advertising, which were found to violate Section 10 of the Competition Act, 2010.
According to a press release, the payment reflects a positive commitment by businesses to adhere to regulatory guidelines. The case came to light after Unilever Pakistan filed a formal complaint against RB, alleging misleading advertising practices.
The contentious advertisement promoted RB’s Dettol Soap, claiming that it could eliminate 99.9% of germs and provide 24-hour protection against germs, cold, and flu. After a detailed investigation, the CCP concluded that these claims were unsubstantiated and did not meet the standards required under the Competition Act.
As a result, the CCP imposed a Rs30 million fine on RB. In response, RB appealed the decision to the Competition Appellate Tribunal (CAT), seeking a reduction in the penalty. On July 11, 2024, the Tribunal upheld the CCP’s findings but agreed to lower the fine from Rs30 million to Rs15 million. The Tribunal gave RB a 60-day window to comply with the payment order.
When the 60-day period expired, the CCP issued a recovery notice to RB on September 26, 2024, demanding the immediate payment of the penalty. RB acted swiftly to comply with the Tribunal’s decision, depositing the full Rs15 million penalty into the national exchequer within the required timeframe.
This case highlights the importance of truthful advertising and regulatory compliance in Pakistan’s competitive market. It serves as a reminder for businesses to ensure that their marketing claims are backed by substantial evidence to avoid legal repercussions. The resolution of this case also underscores the role of the CCP in maintaining fair competition and protecting consumer rights, while the swift compliance by RB reflects a willingness among companies to adhere to regulatory rulings and promote responsible business practices.
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