| Case ID |
20a0f992-770b-4696-a526-9a6c2acad61e |
| Body |
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| Case Number |
File No. 174/OFT/P&G/CCP/2014 |
| Decision Date |
Jul 20, 2017 |
| Hearing Date |
May 17, 2016 |
| Decision |
The Competition Commission of Pakistan found that Procter and Gamble's advertising claim that Safeguard is 'Pakistan's No. 1 rated antibacterial soap' was misleading and lacked substantiation. The Commission imposed a penalty of Rs. 10 million on the respondent for violating Section 10 of the Competition Act, as the claim was deemed false and misleading to consumers and competitors. The respondent was required to clarify the falsity of its claim through appropriate media channels and to file a compliance report within 45 days. The decision emphasized the importance of having a reasonable basis for advertising claims, particularly those related to health and hygiene products. |
| Summary |
In a landmark decision, the Competition Commission of Pakistan ruled against Procter and Gamble for deceptive marketing practices concerning their antibacterial soap, Safeguard. The case highlighted the necessity for substantiating advertising claims, particularly those implying health benefits. The complainant, Reckitt Benckiser, argued that Procter and Gamble's assertion of being 'Pakistan's No. 1 rated antibacterial soap' was misleading, lacking credible market research to support it. The Commission's findings underscored that advertising must not only be persuasive but also truthful and backed by reliable data, particularly in the health and hygiene sector. This ruling serves as a critical reminder for companies to ensure their marketing practices align with legal standards to avoid penalties and maintain consumer trust. Keywords: Competition Act, deceptive marketing, Procter and Gamble, Reckitt Benckiser, antibacterial soap, advertising claims, health benefits, consumer protection. |
| Court |
Competition Commission of Pakistan
|
| Entities Involved |
Reckitt Benckiser Pakistan Limited,
Procter and Gamble Pakistan (Pvt.) Limited
|
| Judges |
MS. VADIYYA KHALIL,
IKRAM UL HAQUE QURESHI
|
| Lawyers |
Ms. Amar Abbasi,
Ahmed Rizvi,
Saqib Zia,
Feroz Ahmed,
Hasan Paliwalla,
Zaki Muhammad,
Saad Hashmi,
Ms. Sana Khan
|
| Petitioners |
Messrs Reckitt Benckiser Pakistan Limited
|
| Respondents |
Messrs Procter and Gamble Pakistan (Pvt.) Limited
|
| Citations |
2017 SLD 2215 = 2017 CLD 1609
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Competition Act (XIX of 2010)
|
| Sections |
10,
30,
37
|