DNA
ISLAMABAD, MAR 11: The Competition Appellate Tribunal has upheld an order passed by the Competition Commission of Pakistan (CCP) against Proctor and Gamble Pakistan (P&G) for engaging in deceptive marketing practices. The Tribunal dismissed P&G appeal to set aside CCP’s ruling.
In its ruling, the Tribunal also stated that the CCP has the authority to determine the legitimacy of a complaint and to decide whether to accept or dismiss it based on the complaint’s merits.
The CCP had imposed a penalty of 10 million rupees on P&G for falsely advertising its product Safeguard as Pakistan’s No. 1 anti-bacterial soap. However, the Tribunal reduced the penalty to five million rupees, considering P&G’s compliance-oriented approach and the fact that P&G had dropped the No-1 claim shortly after the initiation of enquiry by the CCP in 2014.
The enquiry was initiated based on a complaint filed by Reckitt Benckiser Pakistan Limited, alleging that P&G’s advertisement campaign for Safeguard was misleading. The CCP concluded that P&G’s advertisement campaign violated Section 10 of the Competition Act by creating the overall impression that Safeguard was Pakistan’s top-rated anti-bacterial soap. It lacked reasonable basis to substantiate the claim.
During the appeal, the Tribunal noted that the studies cited by P&G to support its claim were based on public opinions and lacked scientific research. While the exact monetary loss due to such claims could not be assessed, the Tribunal acknowledged the potential harm such claims could have on competitors’ business.
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