ISLAMABAD: The Competition Appellate Tribunal (CAT) has upheld a Competition Commission of Pakistan (CCP) decision finding that Reckitt Benckiser Pakistan Limited engaged in deceptive marketing of its Strepsils product by providing misleading information about its nature and status to consumers.
The ruling reinforces consumer protection requirements under Pakistan’s competition laws and directs the company to pay a Rs30 million penalty while complying with corrective measures ordered by the Commission.
According to the Tribunal’s decision, Reckitt Benckiser violated Section 10(2)(b) of the Competition Act, 2010 by disseminating information that created a misleading impression about the product. The Tribunal also directed the company to ensure compliance with the Commission’s instructions within the prescribed timeframe.
The case originated from a complaint filed by Square Distribution & Marketing System (Pvt.) Limited, which alleged that Reckitt Benckiser continued to market Strepsils in a manner that suggested it was a medicinal product for sore throat relief despite its deregistration as a drug.
Packaging and marketing changes noted
The Tribunal observed that Strepsils is currently registered as a food product and noted that the company had made substantial changes to its packaging and marketing practices following the CCP’s proceedings.
According to the judgment, the updated packaging prominently displays the term “Non-Medicated” in both English and Urdu on the front of product packaging and blister packs. The Tribunal noted that such disclosures were previously less visible.
The ruling stated that these changes reflected the need for corrective measures and acknowledged the modifications introduced after regulatory intervention.
Public notices required
As part of the CCP’s directives, Reckitt Benckiser has been instructed to publicly communicate the change in Strepsils’ status from a medicated product to a food product.
The company is required to publish notices in at least three widely circulated English and Urdu newspapers across Pakistan on a weekly basis until full compliance with the Commission’s orders is achieved.
The Competition Commission of Pakistan said the decision underscores the importance of transparency in advertising and the obligation of businesses to provide accurate and clear information to consumers.
The Commission stated that the ruling supports consumers’ ability to make informed purchasing decisions based on truthful product information.
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