CCP imposes Rs60 million fine on Unilever Pakistan

ISLAMABAD: The Competition Commission of Pakistan (CCP) has passed an order imposing a fine of Rs 60 million on the Unilever Pakistan for allegedly airing deceptive claims through television commercials for its hygiene and cleansing products, ‘Lifebuoy (Care and Protect) Soap’ and ‘Lifebuoy Hand Wash’.

The commission’s bench has disposed of proceedings pertaining to a show cause notice issued to the Unilever Pakistan for prima facie violations of Section 10 of the Competition Act of 2010 that prevents businesses from engaging in deceptive marketing tactics based on misleading information or false claims.

Enforcing prohibition against deceptive marketing is one of the core mandates of the CCP. The commission protects consumers from misleading information and safeguard competitors from anti-competitive behaviour that could harm business interests of undertakings.

Based on a complaint submitted by the Reckitt Benckiser about products namely Lifebuoy soap and hand wash, the CCP conducted an inquiry into the Unilever Pakistan Limited’s absolute claims regarding its products, such as “100 percent guaranteed protection from germs”, “World’s No. 1 germ protection soap”, and “99.9 percent germ protection in 10 seconds.” The disclaimers about these claims were printed in tiny fonts and hardly noticeable. The Unilever Pakistan Limited was found to be misleading consumers and harming other businesses by making false claims about their products. The commission’s order observed five distinct violations of Section 10 of the Competition Act. The claims related to health and safety were not substantiated by reliable scientific evidence. The order also cited that the Unilever continued to engage in deceptive practices despite issuance of a show cause notice.

The order further noted that the Unilever’s deceptive practices varied by region, with different wording for the same product in countries such as Saudi Arabia, the UK and Bangladesh. The most severe deceptions were found in Pakistan, which the commission deemed unacceptable.

While imposing a penalty of Rs 60 million, the CCP additionally directed the Unilever to submit a compliance report to the CCP registrar within 30 days of issuance of the order.The CCP strives for fair market environment that offers customers fair prices, high-quality products, more choices, and a level-playing field for businesses to thrive.