Dettol Ad Claims Lead to 15M Penalty

Islamabad (TDI): Reckitt Benckiser (RB) Pakistan has complied with the recent ruling of the Competition Commission of Pakistan (CCP), depositing a PKR 15 million penalty in the national exchequer for violating Section 10 of the Competition Act, 2010.

The penalty was imposed in connection with unsubstantiated claims made in RB’s advertising campaign for Dettol Soap.

The issue came to light after Unilever Pakistan lodged a formal complaint against Reckitt Benckiser.

That accused the company of misleading advertising.

RB’s campaign claimed that Dettol Soap could eliminate 99.9% of germs and provide 24-hour protection against germs, colds, and flu.

So that after conducting a detailed investigation, the CCP determined that RB’s claims lacked sufficient scientific evidence to back them up.

As a result, the CCP ruled that these advertisements violated the Competition Act and initially imposed a PKR 30 million penalty on Reckitt Benckiser.

RB appealed the CCP’s findings to the Competition Appellate Tribunal (CAT), seeking a review of the decision.

On July 11, 2024, the tribunal upheld the CCP’s ruling but reduced the penalty from PKR 30 million to PKR 15 million.

This cited mitigating factors. The Tribunal granted RB 60 days to deposit the reduced amount.

Also Read:CCP Approves Acquisition of Sadapay By PPR Holding A.S.

As the deadlines for the payment approached, the CCP issued a recovery notice to Reckitt Benckiser on September 26, 2024.

The notice reminds the company of its obligation to comply with the Tribunal’s order.

RB responded promptly by depositing the PKR 15 million penalty.

This demonstrates its commitment to regulatory compliance and responsible business conduct.

The case outlined the importance of truthful advertising and accountability in the business sector.

Reckitt Benckiser’s settlement of the penalty reflects its recognition of the need to adhere to fair competition practices.

However, The CCP remains committed to ensuring a transparent marketplace in Pakistan, where companies are held to high standards of honesty and accuracy in their commercial communications.

With the penalty now paid, RB has closed this chapter of its regulatory challenges.

The CCP’s enforcement actions serve as a reminder to all businesses in Pakistan that misleading consumers through false or exaggerated advertising will not be tolerated.