The Competition Commission of Pakistan (CCP) has recovered Rs. 30 million from Reckitt Benckiser Pakistan Limited after the Competition Appellate Tribunal (CAT) upheld the regulator’s findings in a deceptive marketing case involving the company’s Strepsils product.
The recovery follows the Tribunal’s decision on an appeal against a CCP order issued on February 9, 2021. The Commission had found the company in violation of Section 10(2)(b) of the Competition Act, 2010, for disseminating misleading information regarding the nature and character of the product.
In its judgment, the Tribunal upheld CCP’s finding that Reckitt Benckiser had created the impression that Strepsils was a medicinal product for sore throat relief despite the product having been deregistered as a drug and subsequently marketed as a non-medicated product. Strepsils is currently registered as a food item.
The Tribunal directed the company to pay a penalty of Rs. 30 million and fully implement the corrective measures prescribed by the Commission within the specified timeframe.
The case originated from a complaint filed by Square Distribution & Marketing System (Pvt.) Limited, which alleged that the company’s advertising and marketing campaigns misled consumers about the product’s status and characteristics.
The Tribunal also noted that Reckitt Benckiser introduced significant changes to the product’s packaging and disclosures following CCP’s proceedings. These changes included the prominent display of the disclaimer “Non Medicated” in both English and Urdu on the front of product packaging and blister packs to improve consumer awareness and transparency.
Under CCP’s directions, the company is also required to widely publicize the change in the product’s status from a medicated drug category to a food category through advertisements in leading English and Urdu newspapers across the country until full compliance is achieved.
The Commission said the recovery of the penalty reflects its continued efforts to protect consumers and ensure businesses provide accurate, clear, and truthful information about their products and services.
CCP added that it remains committed to curbing deceptive marketing practices and promoting transparency, informed consumer choice, and fair competition in the marketplace.
