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

ISLAMABAD, August 9: 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.
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.