CCP Upholds Rs. 3 Crore Fine Against Strepsils Maker in Misleading Ad Case

The Competition Appellate Tribunal (CAT) has upheld a Competition Commission of Pakistan (CCP) ruling against Reckitt Benckiser Pakistan Limited over the marketing of its Strepsils product, directing the company to pay a Rs. 30 million penalty and comply with corrective measures ordered by the regulator.

The tribunal upheld the Commission’s finding that the company violated Section 10(2)(b) of the Competition Act, 2010 by disseminating misleading information regarding the nature and character of the product. It directed Reckitt Benckiser to ensure compliance with the Commission’s instructions within the prescribed timeframe.

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

According to the tribunal’s judgment, the company made substantial changes to the product’s packaging and disclosures after the Commission initiated proceedings.

The tribunal noted that the packaging now prominently displays the words “Non-Medicated” in both English and Urdu on the front of the pack and blister packs, whereas such disclosures were previously less visible.

It observed that these changes reflected recognition of the need for corrective measures and acknowledged that the company had significantly modified its packaging and marketing practices following the Commission’s intervention.

As part of the CCP’s directions, Reckitt Benckiser has also been required to publicize the change in the product’s status from a medicated product to a food item through advertisements in at least three widely circulated English and Urdu newspapers. These notices must be published weekly until full compliance is achieved.

The CCP said the decision reinforces the importance of transparency in advertising and consumer protection, ensuring that businesses provide accurate and clear information to help consumers make informed purchasing decisions.