The Competition Commission of Pakistan (CCP) has imposed a fine of PKR 60 million on Unilever Pakistan for disseminating deceptive claims in television commercials for its hygiene products, Lifebuoy (Care and Protect) Soap and Lifebuoy Hand Wash. The decision marks a significant move by the CCP to uphold its mandate against misleading marketing practices.
The fine follows an inquiry prompted by a complaint from Reckitt Benckiser, which challenged the veracity of Unilever’s advertising claims, such as “100 percent guaranteed protection from germs,” “World’s No. 1 germ protection soap,” and “99.9 percent germ protection in 10 seconds.” The CCP found that these claims were not supported by credible scientific evidence, and the accompanying disclaimers were printed in such small fonts that they were virtually unnoticeable.
The Commission’s investigation revealed five distinct violations of Section 10 of the Competition Act of 2010, which prohibits deceptive marketing tactics. The CCP determined that Unilever Pakistan’s advertisements not only misled consumers but also unfairly harmed competitors by making unsubstantiated claims about the effectiveness of its products.
Furthermore, the CCP noted regional variations in Unilever’s advertising practices, with differing claims made for the same products in countries such as Saudi Arabia, the UK, and Bangladesh. The most egregious instances of deceptive marketing were identified in Pakistan, which the CCP deemed unacceptable.
In addition to imposing the financial penalty, the CCP has directed Unilever Pakistan to submit a compliance report within 30 days of the order’s issuance. This report is to be submitted to the Registrar of the CCP, detailing steps taken to rectify the misleading practices.
The CCP’s action underscores its commitment to fostering a fair market environment that ensures consumers are provided with accurate information, fair prices, and high-quality products, while also safeguarding businesses from anti-competitive conduct.
