CCP Recovers Rs. 150 Million from Reckitt Benckiser in Misleading Ads Case

The Competition Commission of Pakistan (CCP) has recovered a penalty of Rs. 150 million from Reckitt Benckiser Pakistan Limited for the deceptive marketing of its product Strepsils. The recovery was made by attaching the company’s bank account after the dismissal of its appeal by the Competition Appellate Tribunal (CAT). Section 40(2)(a) of the Competition Act, 2010, authorizes the CCP to recover penalties by attaching the bank accounts of entities that fail to comply with its orders. The CCP had imposed a fine on Reckitt Benckiser for misleading consumers by presenting Strepsils as a medicated remedy for sore throats. The product had been de-registered as a drug after its acquisition by Reckitt in 2005. However, it continued to be marketed in a way that falsely implied medicinal efficacy. The Commission concluded that the company violated Section 10 of the Competition Act, 2010, by disseminating deceptive content and harming the business interests of competing undertakings. As a result, a penalty of PKR 150 million was imposed. Reckitt Benckiser filed an appeal against the CCP’s order, but the CAT dismissed the appeal due to non-prosecution. With the appeal dismissed, the CCP enforced its order and recovered the full amount.