Tribunal Upholds Penalty on Reckitt Benckiser Over Strepsils Claims.
Reckitt Benckiser Strepsils CCP penalty
Delivering a landmark ruling for consumer protection and corporate advertising accountability, the Competition Appellate Tribunal (CAT) has officially dismissed an appeal filed by consumer goods giant Reckitt Benckiser Pakistan Limited, upholding a multi-million-rupee penalty originally slapped on the company for the deceptive marketing of its popular lozenge, Strepsils.
The Tribunal fully endorsed the findings of the Competition Commission of Pakistan (CCP) from its February 9, 2021 order, confirming that Reckitt Benckiser had actively violated Section 10(2)(b) of the Competition Act, 2010. The court ruled that the multinational firm disseminated highly misleading information to the public regarding the actual character, nature, and regulatory status of the product.
The Core of the Dispute: Medicated Remedy vs. Food Lozenge
The historical legal battle traces back to a formal complaint revealing structural changes in the product’s underlying classification. The documentation highlights significant operational details regarding the product’s marketing shift:
- De-Registration Status: Strepsils was officially de-registered as a medicinal drug after being acquired by Reckitt from Boots in 2005.
- Inadequate Disclosures: Despite transitioning the formulation to a non-medicated food product, the firm continued using promotional graphics that falsely implied strong medicinal efficacy for treating sore throats and coughs.
- Public Perception Deception: The CCP inquiry established that the massive public consumer base was actively misled into purchasing the item under the impression that it remained an active pharmaceutical remedy.
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