Strepsils Maker Faces Penalty of Rs150 Million by CCP
The company had been using deceptive marketing campaigns for its product 'Strepsils'
The Competition Commission of Pakistan (CCP) imposed a penalty of Rs 150 million on British multinational consumer goods company, Reckitt Benckiser, for misleading marketing claims about its product ‘Strepsils’.
The fine was imposed on the company for violating Section 10 of the Competition Act, 2010.
The company faced penalty after a formal complaint was lodged by Square Distribution & Marketing System (Pvt.) Limited which held that the company has been disseminating misleading information to consumers.
It was alleged in the complaint that the product was de-registered as a drug in 2005 and then re-launched with a disclaimer stating ‘non-medicated Lozenges’.
However, Reckitt Benckiser has been using deceptive marketing campaigns for the product.
Strepsils have been marketed by Reckitt Benckiser as a product to cure sore throat and cough and in this case, the product can be used as a medicine.
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The marketing campaign of Reckitt Benckiser also depicts that the average consumer has been using Strepsils for the same purpose.
CCP’s inquiry concluded that the marketing campaign of Strepsils is a violation of the competition act.
CCP issued orders to Reckitt Benckiser to stop misleading marketing of Strepsils along with imposition of a penalty and to print the disclaimer of the product as “non-medicated” on its packaging as well as on the strips.
According to the CCP bench, the company has failed to convince that it has made any serious effort to aware public of the important fact that the formula for the product has now been changed.
