HomeBusinessCCP Imposes Rs60m Penalty on Unilever Pakistan for Deceptive Marketing

CCP Imposes Rs60m Penalty on Unilever Pakistan for Deceptive Marketing

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Islamabad, 9 August 2024 (TDI): The Competition Commission of Pakistan (CCP) on Friday imposed a fine of Rs60 million on Unilever Pakistan Limited for deceptive marketing through television commercials.

The CCP started proceedings against the multinational company after receiving a complaint under Section 10 of the Competition Act, 2010. The Act bars businesses from using misleading marketing tactics to deceive consumers.

The complaint was lodged by Reckitt Benckiser against Unilever’s claims that its hygiene products (Lifebuoy soup and handwash) provided “100% guaranteed protection from germs,” was “World’s No. 1 germ protection soap,” and gave “99.9% germ protection in 10 seconds.”

The CCP proceedings deemed these claims misleading. Further, the disclaimers were printed in fonts so small that they were barely noticeable.

During the proceedings, Unilever Pakistan was given several opportunities but it failed to provide scientific evidence to support the health and safety claims.

“Despite being issued a show cause notice, Unilever continued its deceptive practices,” it added.

The investigation also revealed that the company used deceptive practices in countries like Saudi Arabia, the UK, and Bangladesh with slight changes in wording. However, the most severe violations were found in Pakistan, which the CCP described as unacceptable.

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