Islamabad: Reckitt Benckiser (RB) Pakistan has deposited a PKR 15 million penalty into the national exchequer, adhering to a ruling by the Competition Appellate Tribunal (CAT) regarding misleading advertising claims. This payment marks RB’s compliance with the regulatory standards set by the Competition Commission of Pakistan (CCP).
According to Competition Commission of Pakistan, the issue originated from a complaint lodged by Unilever Pakistan, which alleged that RB’s advertising for Dettol Soap made false claims about its germ-killing effectiveness and protection duration. The advertisements stated that Dettol Soap could eliminate 99.9% of germs and provide 24-hour protection against germs, cold, and flu, claims which the CCP found to be unsubstantiated.
The CCP’s investigation concluded that these claims violated Section 10 of the Competition Act, 2010, leading to an initial fine of PKR 30 million. RB challenged this decision, taking the case to the CAT, which on July 11, 2024, upheld the CCP’s ruling but reduced the penalty to PKR 15 million.
RB was given 60 days to comply with the CAT’s order and deposit the reduced fine. Following the issuance of a recovery notice by the CCP on September 26, 2024, RB fulfilled its legal obligations by depositing the PKR 15 million penalty, thereby demonstrating its commitment to regulatory compliance.
This case underscores the CCP’s ongoing efforts to ensure that business practices within Pakistan adhere to fair competition laws and that advertising claims are transparent and verifiable.