CAT upholds CCP’s findings on deceptive marketing of Strepsils

The Competition Appellate Tribunal (CAT) has decided an appeal filed by Reckitt Benckiser Pakistan Limited against an order of the Competition Commission of Pakistan (CCP), dated February 9, 2021, concerning the deceptive marketing of its product, Strepsils.

The tribunal upheld the commission’s finding that Reckitt Benckiser had violated Section 10(2)(b) of the Competition Act, 2010, by disseminating misleading information to consumers regarding the nature and character of the product.

The tribunal directed the company to pay a penalty of Rs30 million and strictly comply with the corrective measures prescribed by the commission. It further directed that compliance with the commission’s instructions be ensured within the stipulated period, said a release issued here on Monday.

The case arose from a complaint filed by M/s Square Distribution & Marketing System (Pvt.) Limited, alleging that Reckitt Benckiser had created the impression through its marketing and advertising that Strepsils was a medicinal product for sore throat relief, despite its deregistration as a drug and subsequent marketing as a non-medicated product. At present, the product is registered as a food item.

In its judgment, the tribunal noted that the company had substantially altered its product packaging and disclosures following the commission’s proceedings. It observed that Strepsils packaging had undergone material changes, including the prominent display of the words “Non-Medicated” in both English and Urdu on the front of the packaging and blister packs, whereas previously such disclosure was less conspicuous.

The tribunal observed that these modifications reflected acceptance of the need for corrective measures and acknowledged that the company had made significant changes to its packaging and marketing practices following the commission’s intervention.

As part of the commission’s directions, Reckitt Benckiser has also been required to prominently publicise the change in the status of the product from a medicated/drug category to a food category through advertisements in at least three widely circulated English and Urdu newspapers across Pakistan. Such notices are required to be published weekly until full compliance is achieved.

The CCP remains committed to protecting consumers from deceptive marketing practices and ensuring that businesses provide accurate, clear and truthful information regarding their products and services. The decision reinforces the importance of transparency in advertising and affirms consumers’ right to make informed purchasing decisions based on correct information.