Competition Appellate Tribunal Upholds Penalty Against Proctor and Gamble Pakistan

The Competition Appellate Tribunal has upheld a ruling by the Competition Commission of Pakistan (CCP) against Proctor and Gamble Pakistan (P&G) for deceptive marketing practices, imposing a fine of Rs 5 million on the multinational corporation.

Despite P&G’s appeal to overturn the CCP’s decision, the Tribunal affirmed the penalty on Monday, asserting the CCP’s authority to assess complaints and proceed based on merit.

Initially, the CCP had fined P&G Rs 10 million for falsely promoting its product Safeguard as Pakistan’s leading antibacterial soap. However, considering P&G’s cooperation and withdrawal of the claim following the CCP’s inquiry, the Tribunal reduced the fine to Rs 5 million.

The investigation, initiated after a complaint by Reckitt Benckiser Pakistan Limited, found P&G’s Safeguard advertising campaign to be misleading. The CCP concluded that P&G’s promotional efforts violated Section 10 of the Competition Act by falsely portraying Safeguard as the highest-rated antibacterial soap in Pakistan without sufficient evidence.

The advertisement’s claim of Safeguard being “Pakistan’s No 1 rated Anti-bacterial Soap” without a clear disclaimer was deemed a breach of Section 10 of the Competition Act. Consequently, P&G Pakistan received a show cause notice following the inquiry report’s recommendation.

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