October 01, 2024 (MLN): In compliance with the Competition Commission of Pakistan's (CCP) order for unsubstantiated claims in advertisements violating Section 10 of the Competition Act, Reckitt Benckiser (RB) Pakistan has deposited a Rs15 million penalty into the national exchequer.
This recovery demonstrates a positive commitment to regulatory compliance by business entities, said a press release.
The issue was initially brought to attention through a formal complaint filed by Unilever Pakistan, accusing Reckitt Benckiser of misleading advertising.
RB's campaign claimed that Dettol Soap could eliminate 99.9% of germs and offer 24-hour protection against germs, cold, and flu.
The CCP, following a thorough inquiry, found Reckitt Benckiser’s claims about Dettol Soap to be unsubstantiated and in violation of Section 10 of the Competition Act, 2010. Consequently, a penalty of Rs30m was imposed.
RB appealed the CCP's findings to the Competition Appellate Tribunal (CAT). On July 11, 2024, the Tribunal upheld the CCP's decision but reduced the penalty from Rs30m to Rs15m, allowing RB 60 days to deposit the amount.
After the 60-day deadline for depositing the penalty, as specified in the Tribunal’s verdict, the CCP issued a recovery notice to RB on September 26, 2024. In compliance, RB promptly deposited the Rs15m penalty, fully adhering to the Tribunal’s order.
