deceptive marketing practices

Household goods: CCP slaps Rs1.25m fine on manufacturing company

By Our Correspondent

Published: August 13, 2015

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PHOTO: WWW.DETTOL.PK

ISLAMABAD:  The anti-trust watchdog has slapped a fine of Rs1.25 million on

Reckitt Benckiser (Pakistan) Ltd

9th floor, QM Building
Plot No. BC-15
Block 7, Clifton
Karachi 74400
Pakistan

T +92 21 3583 9043

RB Corporate HQ
Slough, Berkshire, England T +44 (0) 1753 217800.


– a household manufacturing goods company – for “deceptive marketing practices”.

The Competition Commission of Pakistan (CCP) issued the order against the company for running a deceptive television commercial for its household cleaning product named ‘Dettol Surface Cleaner’, according to a handout issued by the CCP on Wednesday.
The CCP found that the company misled the consumers and harmed the business interests of Reckitt’s competitors in violation of Section 10 of the Competition Act, 2010.
The CCP had issued a showcause notice to Reckitt after a CCP inquiry found that the company was abusing the law that prohibits deceptive marketing practices.
False claims
The marketing campaign made four distinct claims; saying phenyl was highly ineffective against germs, only Dettol Surface Cleaner can kill more germs than phenyl, Dettol Surface Cleaner can kill 99.9% of germs and Dettol Surface Cleaner can kill germs 10 times more than phenyl.
With regards to the first claim, the CCP said, Reckitt submitted that the claims were based on a comparative disinfectant efficacy study carried out by its own laboratories between Dettol Surface Cleaner and unbranded ordinary phenyl. The order found that the study did not substantiate the claim against all types and brands of phenyl, and is thus misleading and capable of harming the business interests of phenyl manufacturers.
In relation to the second claim, CCP’s order reasons that in the absence of a comparison with other surface cleaners available in the market, it would not be appropriate to say that only Dettol Surface Cleaner can kill germs more than Phenyl.
Regarding the third claim, the order holds that while the term germs includes all disease carrying microorganisms such as bacteria, virus, fungi, and protozoa, the product has only been tested against three species of bacteria.
Furthermore, the conditions required for Dettol Surface Cleaner to achieve 99.9% efficacy in a laboratory are appreciably different from those present in common households. This makes the claim misleading for the consumers.
Concerning the fourth claim, the order states that the study only substantiated the claim with respect to unbranded ordinary phenyl; hence the claim is capable of misleading consumers and harming the business interest of Reckitt’s competitors.
Penalty
The CCP has imposed a token penalty of Rs250,000 for each violation. Through the order, the CCP has directed Reckitt to pick a suitable alternative to the fourth claim of ‘Kills 99.9% of germs’ within thirty days and file a compliance report with the Commission.
If the undertaking fails to amend the outstanding claim within the time period stipulated, it will be liable to pay Rs5 million for the violation relating to this claim, in addition to facing possible non-compliance proceedings. Reckitt has been reminded that deceptive marketing practices in the future may entail stricter penal consequences.
Published in The Express Tribune, August 13^th,  2015.