ISLAMABAD: The Competition Commission of Pakistan (CCP) has successfully recovered Rs. 150 million from Reckitt Benckiser Pakistan Limited after the company lost its appeal in a deceptive marketing case involving Strepsils lozenges.
The recovery was made by attaching the company’s bank account, as permitted under Section 40(2)(a) of the Competition Act, 2010, which allows CCP to recover penalties from entities failing to comply with its orders.
Why Reckitt Was Fined
Strepsils was originally registered as a medicated remedy for sore throats but was de-registered as a drug in 2005 after Reckitt acquired the brand.
Despite this change, the product continued to be marketed in a way that implied medicinal efficacy, misleading consumers.
The CCP ruled that this deceptive advertising violated Section 10 of the Competition Act, 2010, as it misled consumers and harmed competing businesses.
Appeal Dismissed
Reckitt Benckiser appealed the CCP’s decision before the Competition Appellate Tribunal (CAT). However, the appeal was dismissed due to non-prosecution, paving the way for CCP to enforce the penalty.
With the dismissal of the appeal, the CCP promptly attached Reckitt Benckiser’s bank account and recovered the full Rs. 150 million penalty.
This case highlights CCP’s commitment to protecting consumer rights and ensuring fair competition in Pakistan’s marketplace.
