CCP imposes Rs10mn penalty on Proctor & Gamble

ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a penalty of Rs 10 million on Proctor & Gamble Pakistan Private Limited.

The penalty was imposed for deceptively advertising its product `Safeguard' as `Pakistan's No.1 rated Anti-Bacterial Soap' in violation of Section 10 of the Competition Act, 2010.

The order has been passed by a two-member CCP bench comprising Chairperson Vadiyya Khalil and Member Ikram Ul Haq Qureshi, said a press release.

The CCP received a formal complaint from Reckitt Benckiser Pakistan Limited wherein it was alleged that Proctor & Gamble publicised its product "Safeguard" as "Pakistan's No. 1 rated Anti- bacterial Soap" as it lacked reasonable basis to substantiate the claim.

An inquiry conducted by the CCP concluded that the overall net impression of the Safeguard advertisement is that "Safeguard is Pakistan's No. 1 Antibacterial Soap", as the word `rated' is written in a significantly smaller font.

Moreover, without a clear and conspicuous disclosure, the advertisement campaign for Safeguard as "Pakistan's No. 1 rated Anti-bacterial Soap" amounts to violation of Section 10 of the Competition Act.

On recommendation of the inquiry report, a show cause notice was issued to Proctor & Gamble Pakistan.

After hearing the complainant and respondent, the CCP's bench passed the order stating the advertising claims must be based on `competent and reliable scientific evidence' particularly if the product involves health and safety claims.

The CCP order found Proctor & Gamble's reliance on studies and surveys to rank itself as Pakistan's No. 1 rated Antibacterial Soap irrelevant, materially false and misleading, in violation of Section 10 of the Competition Act.

In addition to imposing the penalty, the CCP has also directed the company to inform the public at large the falsity of its advertising claim through appropriate clarification in all Urdu and English dailies and TV channels for a period of one week from the date of this order.

CCP has further directed Proctor & Gamble to file a compliance report with the Registrar of the Commission within a period of forty-five (45) days from the date of issuance of this order.