Dettol owner deposits Rs.15 million penalty for misleading advertising claims

ISLAMABAD: Reckitt Benckiser (RB) Pakistan has taken a significant step towards regulatory compliance by depositing a Rs. 15 million penalty into the national exchequer, as directed by the Competition Commission of Pakistan (CCP).

This development stems from a complaint by Unilever Pakistan, alleging that RB’s advertising campaign for Dettol Soap was misleading.

The campaign claimed that Dettol Soap could eliminate 99.9% of germs and provide 24-hour protection against germs, colds, and flu. However, upon investigation, the CCP found these claims to be unsubstantiated and in violation of Section 10 of the Competition Act, 2010.

Initially, the CCP imposed a penalty of Rs. 30 million on RB. RB appealed this decision to the Competition Appellate Tribunal (CAT), which upheld the CCP’s findings but reduced the penalty to Rs. 15 million.

The Tribunal allowed RB 60 days to deposit the amount, and following the deadline, the CCP issued a recovery notice on September 26, 2024.

Demonstrating its commitment to compliance, RB promptly deposited the Rs. 15 million penalty, adhering to the Tribunal’s order.

This outcome highlights the importance of regulatory compliance in Pakistan’s business landscape. The CCP’s actions serve as a reminder to companies to ensure the accuracy and substantiation of their advertising claims, maintaining fair competition and protecting consumer interests.