Dettol Slapped with Showcause Notice for Deceptive Marketing

The Competition Commission of Pakistan (CCP) has kept a close eye on deceptive marketing practices and it has taken actions against renowned multinational companies in recent months.

Now, it has served a showcause notice to Reckitt Benckiser Pakistan Limited for its involvement in deceptive marketing practices for its product ‘Dettol.’

Reckitt Benckiser, the company which previously lodged complaints against Colgate-Palmolive and P&G, has come under the radar of CCP, which has accused the company of violating Section 10 of the Competition Act, 2010 by engaging in deceptive marketing practices for its product ‘Dettol.’

CCP received a formal complaint from Unilever Pakistan Limited alleging that Reckitt Benckiser is making unjustified and baseless claims in its marketing campaign for “Dettol”.

Misleading Claims

An inquiry conducted by CCP found Reckitt Benckiser of making unsubstantiated claims its TV commercials such as,

• ‘Dettol soap kills flu-like germs up to 99.9%’,
• ‘Dettol gives 24 hours constant protection from germs, 24 hours protection from germs that spread in winters,’
• ‘Dettol provides 24 hours germ protection from cold and Flu,’
• ‘Dettol prevents germs (E.coli & S.Aureus) from increasing for up to 24 hours.’

By making these claims, Reckitt Benckiser has prima facie violated Section 10 of the Competition Act by disseminating false and misleading information and deceiving consumers. Moreover, this could also harm the business interest of the complainant and other competitors.

On recommendations of the inquiry report, a Show Cause Notice has been served to Reckitt Benckiser and the company has been directed to respond in writing within fourteen days.

In the recent orders passed by CCP in relation to consumer issues, companies have been directed to exercise extreme care while making advertising claims. Particularly, all the health-related claims must be based on ‘competent and reliable scientific evidence.’

CCP is mandated under the Competition Act to ensure free competition in all spheres of commercial and economic activity, to enhance economic efficiency and to protect consumers from anti-competitive practices including deceptive marketing practices.