CCP imposes PKR 60 million penalty on a multinational for deceptive marketing

ISLAMABAD: The Competition Commission of Pakistan (CCP) has passed an order imposing fine of PKR 60 million on Unilever Pakistan for 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 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.Acquisition of German Conglomerate, CCP’s Approval for Market Integration

Enforcing prohibition against deceptive marketing is one of the core mandates of 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 Reckitt Benckiser about products namely Lifebuoy Soap and hand wash. CCP conducted an inquiry into Unilever Pakistan Limited’s absolute claims regarding its products, such as “100% guaranteed protection from germs”, “World’s No. 1 germ protection soap”, and “99.9% germ protection in 10 seconds.” The disclaimers about these claims were printed in tiny fonts and were hardly noticeable.

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 Unilever continued to engage in deceptive practices despite issuance of a Show Cause Notice.

The Order further noted that 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 PKR 60 million on Unilever for deceptive marketing practices, CCP additionally directed Unilever to submit a compliance report to the Registrar of CCP within 30 days of issuance of order.

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.