Pharma firm fined Rs150m for ‘deceptive’ marketing

Published February 12, 2021
The CCP’s inquiry concluded that the marketing campaign of the respondent appears to be deceptive in terms of Section 10 of the Competition Act. — AFP/File
The CCP’s inquiry concluded that the marketing campaign of the respondent appears to be deceptive in terms of Section 10 of the Competition Act. — AFP/File

ISLAMABAD: The Com­pe­tition Commission of Pak­istan (CCP) on Thursday im­­p­osed a Rs150 million penalty on a pharmaceutical company for deceptive marketing and misleading advertising of one of its products.

The order, passed by a CCP bench comprising chairperson Rahat Kaunain Hassan and member Bushra Naz Malik, said that marketing claims by the pharmaceutical firm can potentially dec­eive consumers with respect to the characteristics, formulation and intended use of tablet Strepsils.

The commission said that the company’s marketing had deceived the general public into perceiving that Strepsils was still a medicated sore throat remedy.

The CCP’s inquiry concluded that the marketing campaign of the respondent appears to be deceptive in terms of Section 10 of the Competition Act in general, which prohibits distribution of false and misleading information to consumers.

The issue was brought to the CCP’s notice by M/s Sq­­uare Distribution & Marke­ting System (Pvt) Limited through a formal complaint alleging that M/s Reckitt Benckiser Pakistan Limited had been disseminating misleading information to the consumers by creating an impression that its product Strepsils was a drug for sore throat and cough.

The complaint pointed out that Strepsils was de-registered as a drug when acquired by Reckitt from Boots in 2005, and then re-launched with the disclaimer, “Non-medicated Lozenges”.

“However, the company made no effort to educate and inform the consumers regarding the discontinuation of medicinal ingredient in it,” the complaint added. “The misleading campaign was also capable of harming the business interests of other undertakings.”

The CCP inquiry committee noted that efforts made by the company to inform the general public about change in the formula of Strepsils were inadequate.

“Barely printing ‘Non-Medicated Lozenges’ on the product box and that too in a very small font does not discharge the onus of making due and sufficient disclosures of such material change in the character of the product,” the inquiry committee had stated.

The CCP bench gave 40 days to the respondent, starting from the date of the order, for compliance with its directives.

Published in Dawn, February 12th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Slow start
Updated 15 Jun, 2024

Slow start

Despite high attendance, the NA managed to pass only a single money bill during this period.
Sindh lawlessness
Updated 15 Jun, 2024

Sindh lawlessness

A recently released report describes the law and order situation in Karachi as “worryingly poor”.
Punjab budget
15 Jun, 2024

Punjab budget

PUNJAB’S budget for 2024-25 provides much fodder to those who believe that the increased provincial share from the...
Budget and politics
Updated 14 Jun, 2024

Budget and politics

PML-N, scared of taking bold steps lest it loses whatever little public support it has, has left its traditional support — traders — virtually untouched.
New talks?
14 Jun, 2024

New talks?

WILL this prove another false start, or may we expect a more sincere effort this time? Reference is made to the...
A non-starter
14 Jun, 2024

A non-starter

WHILE the UN Security Council had earlier this week adopted a US-backed resolution calling for a ceasefire in Gaza...