The Competition Appellate Tribunal (CAT) upheld an appeal filed by Reckitt Benckiser Pakistan Limited against the ‘s (CCP) order dated February 9, 2021. The CCP found that Reckitt Benckiser had violated Section 10(2)(b) of the Competition Act, 2010 by disseminating misleading information to consumers regarding Strepsils’ nature and character.
The Tribunal directed Reckitt Benckiser to pay a penalty of Rs. 30 million and strictly comply with the Commission’s corrective measures. Compliance was required within the stipulated period. The case stemmed from Square Distribution & Marketing System (Pvt.) Limited’s complaint that Reckitt Benckiser had been misleading consumers by implying Strepsils was a medicinal product for sore throat relief, despite its deregistration as a drug.
The Tribunal noted that following the Commission’s proceedings, the company substantially altered its packaging and disclosures. The “Non-Medicated” label became prominent on the packaging front and blister packs. As per CCP’s directives, Reckitt Benckiser must prominently publicize the product status change from medicated to food category in at least three widely circulated English and Urdu newspapers weekly until full compliance is achieved.
The CCP remains committed to protecting consumers from deceptive marketing practices and ensuring businesses provide accurate information about their products and services. The decision underscores the importance of transparency in advertising and affirms consumers’ right to make informed purchasing decisions based on correct information.