CCP imposes Rs10mln penalty  for deceptive marketing 

ISLAMABAD: Competition Commission of Pakistan (CCP) on Tuesday imposed a fine of Rs10 million on Colgate-Palmolive Pakistan (Pvt) Ltd for a deceptive marketing campaign. The order was given for violating Section 10 of the Competition Act, 2010 for false marketing of one of its products, `Max All Purpose Cleaner' (Max APC).

According to a statement, CCP received a formal complaint from Reckitt Benckiser Pakistan Limited stating that the marketing campaign for Max APC was making deceptive/false claims, including; 24 hours long lasting freshness, 99.9 percent bacteria free, protects against cold and flu, skin infections, and food poisoning, with a disclaimer reading, `based on laboratory testing with concentrate usage’.

Reckitt Benckiser, which produces `Dettol', a competing product to Colgate's Max APC, complained that Colgate-Palmolive had issued a trade letter to discredit `Dettol' with comparative claims, thus harming its business interests.

CCP conducted an inquiry into the matter and issued show cause notice to Colgate-Palmolive on recommendations of the inquiry report. During the hearings, Colgate-Palmolive could not substantiate its advertising claims for Max APC. A bench comprising chairperson Vadiyya Khalil and member Ikram Ul Haque Qureshi passed an order stating that the advertising claims made by Colgate-Palmolive were without scientific backing and evidence, and were capable of harming the business interests of Reckitt Benckiser Pakistan and other competing undertakings in the relevant market.

The bench imposed a penalty of Rs10 million on Colgate-Palmolive for violating Section 10 of the Competition Act, and directed the company to suitably modify its claims relating to Max APC and omit any misleading comparisons from its trade letter. The company was reprimanded not to indulge in deceptive marketing practices in future to avoid stricter penal consequences.