Competition Commission Recovers Rs. 150 Million from Reckitt Benckiser over Misleading Strepsils Advertising
The Competition Commission of Pakistan (CCP) has recovered a penalty of Rs. 150 million from Reckitt Benckiser Pakistan Ltd., following allegations of misleading advertising for the company’s product Strepsils. This recovery, achieved by freezing the company’s bank account, underscores the Commission’s determination to enforce fair market practices and consumer protection standards.
The penalty was originally levied after an investigation found Reckitt Benckiser guilty of marketing Strepsils as a treatment for sore throat, despite the product being a non-medicated lozenge. CCP officials noted that Strepsils had been deregistered as a medicine several years ago, yet the company continued advertising it in a manner that implied therapeutic benefits, contravening advertising regulations and potentially misleading consumers.
After conducting a formal inquiry and hearing, the CCP imposed the Rs. 150 million fine. Reckitt Benckiser contested the decision in the appellate tribunal; however, the appeal was dismissed due to the company’s failure to pursue the case actively. When the deadline for the payment of the penalty lapsed, the CCP exercised its authority under Section 40(2)(a) of the Competition Act, which empowers the Commission to freeze assets and recover penalties from companies that do not comply with its orders.
The CCP stressed the significance of this enforcement action, reiterating its commitment to safeguarding consumer interests and ensuring accountability in advertising, particularly regarding health-related claims. Officials emphasized that deceptive marketing in the pharmaceutical or health-related sectors will receive heightened scrutiny and, where necessary, strict penalties.
This case is seen as a landmark example of regulatory enforcement in Pakistan, setting a precedent for other companies and reiterating the CCP’s capacity to uphold consumer protection laws and act decisively against misleading practices.
