ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed fines worth Rs150 million on Reckitt Benckiser Pakistan Limited for violating the Competition Act 2010 by making misleading marketing claims about its product, Strepsils.
According to CCP, 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 consumers by creating an impression that its product can be sued as a drug to cure sore throat and cough.
It was alleged that the product was de-registered as a drug when acquired by Reckitt from Boots in 2005, and then re-launched with a disclaimer stating ‘Non-medicated Lozenges’; however, the company made no effort to educate and inform consumers regarding the discontinuation of the 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), which prohibits the distribution of false and misleading information to consumers.
Moreover, the marketing campaign demonstrates that the public was actually deceived into perceiving that Strepsils was a medicated sore throat remedy.
Keeping in view, the history of the brand and also the fact that, internationally, it is known and marketed in various jurisdictions as a medicinal product, the disclosure of such fact becomes material for its marketing in Pakistan.
The bench ruled that the marketing campaign had misled consumers and harmed businesses, whereas the respondent was not able to substantiate as to how and to what extent efforts had been made to inform the general public about change in the formula of its product, observing that the disclaimer on the box was not adequate.
The company has been ordered to stop misleading marketing of Strepsils and print the disclaimer, ‘non-medicated, in English and Urdu in bold letters on the product box as well as on the strips.
The bench has given Reckitt Pakistan 40 days, starting from the date of the order, for compliance whereas the company has also been ordered to publish weekly advertisements in at least three English and Urdu newspapers having nationwide circulation regarding the change in the character of the product from medicated to food category in Pakistan.
