The Competition Appellate Tribunal (CAT) has upheld a decision of the Competition Commission of Pakistan against Reckitt Benckiser Pakistan Limited, affirming findings that the company engaged in deceptive marketing practices related to its Strepsils product.
According to a statement issued by the CCP, the tribunal dismissed the company’s appeal against a February 2021 order and ruled that Reckitt Benckiser had violated Section 10(2)(b) of the Competition Act, 2010, by providing misleading information to consumers regarding the nature and characteristics of Strepsils.
The tribunal directed the company to pay a penalty of Rs. 30 million and ensure full compliance with the corrective measures prescribed by the CCP within the stipulated timeframe.
The case originated from a complaint filed by M/s Square Distribution & Marketing System (Pvt.) Limited, which alleged that Reckitt Benckiser’s advertising and marketing campaigns created the impression that Strepsils was a medicinal product for sore throat relief despite its deregistration as a drug and subsequent classification as a non-medicated product. The product is currently registered as a food item.
In its judgment, the tribunal noted that the company had made significant changes to its packaging and disclosures following the CCP’s proceedings. These changes included the prominent display of the words “Non-Medicated” in both English and Urdu on product packaging and blister packs.
The tribunal observed that these modifications reflected acceptance of the need for corrective measures and acknowledged the changes made to the product’s marketing and packaging practices after regulatory intervention.
The CCP also directed the company to widely publicize the change in the product’s status from a medicated product to a food-category item through advertisements in leading English and Urdu newspapers across Pakistan. Such notices are required to be published regularly until full compliance is achieved.
The commission stated that the decision reinforces the importance of transparency in advertising and consumer protection, emphasizing that businesses must provide accurate and truthful information about their products and services.
