Islamabad: The Competition Commission of Pakistan (CCP) has fined Unilever Pakistan PKR 60 million for deceptive marketing practices related to its hygiene products, ‘Lifebuoy (Care and Protect) Soap’ and ‘Lifebuoy Hand Wash’. The penalty follows the findings of deceptive claims broadcast in television commercials, which were deemed misleading to consumers and damaging to competitors.
According to Competition Commission of Pakistan, the penalty results from Unilever Pakistan’s violations of the Competition Act of 2010, specifically Section 10 which addresses deceptive marketing. The Commission’s investigation was initiated after a complaint from Reckitt Benckiser, highlighting questionable claims in Unilever’s advertisements, such as “100% guaranteed protection from germs” and “World’s No. 1 germ protection soap.” The inquiry noted that the claims were supported by disclaimers in extremely small font, rendering them nearly invisible, thereby not providing transparent information to consumers.
The CCP’s order outlined multiple instances where Unilever Pakistan failed to substantiate its claims with adequate scientific evidence, continuing to engage in misleading practices even after a Show Cause Notice was issued. The order also highlighted that the deceptive marketing tactics varied by region, with the most egregious offenses occurring in Pakistan. This variation included different advertising content for the same products in Saudi Arabia, the UK, and Bangladesh.
As part of the sanction, Unilever is required to submit a compliance report within 30 days, ensuring adherence to truthful advertising standards set forth by the CCP. The Commission reaffirmed its commitment to protecting consumers from misleading information and maintaining a competitive market environment that fosters fair pricing, quality products, and equitable business opportunities.