Deceptive marketing practices: Tribunal upholds CCP’s order against multinational company

ISLAMABAD: The Competition Appellate Tribunal has upheld an order passed by the Competition Commission of Pakistan (CCP) against a multinational company for engaging in deceptive marketing practices and imposed fine of Rs 5 million on the company.

On Monday, the Tribunal dismissed Proctor and Gamble Pakistan (P&G) appeal to set aside CCP’s ruling. In its ruling, the Tribunal also stated that the CCP has the authority to determine the legitimacy of a complaint and to decide whether to accept or dismiss it based on the complaints merits.

The CCP had imposed a penalty of 10 million rupees on P&G for falsely advertising its product Safeguard as Pakistan’s No 1 anti-bacterial soap. However, the Tribunal reduced the penalty to Rs 5 million, considering P&G’s compliance-oriented approach and the fact that P& G had dropped the No-1 claim shortly after the initiation of enquiry by the CCP in 2014.

The enquiry was initiated based on a complaint filed by Reckitt Benckiser Pakistan Limited, alleging that P&G’s advertisement campaign for Safeguard was misleading.

The CCP concluded that P&G’s advertisement campaign violated Section 10 of the Competition Act by creating the overall impression that Safeguard was Pakistan’s top-rated anti-bacterial soap. It lacked reasonable basis to substantiate the claim.

Moreover, without a clear and conspicuous disclosure, the advertisement campaign for Safeguard as “Pakistan’s No 1 rated Anti-bacterial Soap” amounts to a violation of Section 10 of the Competition Act. On the recommendation of the inquiry report, a show cause notice was issued to Proctor & amp; 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.

Copyright Business Recorder, 2024