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Unilever Pakistan Fined Rs60 Million by CCP for Deceptive Marketing Practices

Unilever Pakistan Fined Rs60 Million by CCP for Deceptive Marketing Practices

The Competition Commission of Pakistan (CCP) has imposed a Rs60 million fine on Unilever Pakistan for airing deceptive advertisements for its products, ‘Lifebuoy (Care and Protect) Soap’ and ‘Lifebuoy Hand Wash,’ according to a statement released on Friday.

The CCP’s bench concluded proceedings related to a show cause notice issued to Unilever Pakistan for apparent violations of Section 10 of the Competition Act of 2010, which prohibits businesses from using deceptive marketing tactics based on misleading information or false claims.

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“Preventing deceptive marketing is a core mandate of CCP, as it protects consumers from misinformation and safeguards competitors from anti-competitive practices that could harm business interests,” the statement said.

The inquiry was initiated based on a complaint by Reckitt Benckiser regarding Unilever’s absolute claims about its products, such as “100% guaranteed protection from germs,” “World’s No. 1 germ protection soap,” and “99.9% germ protection in 10 seconds.”

The CCP found that the disclaimers for these claims were printed in tiny, barely noticeable fonts, leading to the conclusion that Unilever was misleading consumers and harming competitors by making false product claims.

The commission identified five specific violations of Section 10 of the Competition Act, noting that health and safety claims were not backed by reliable scientific evidence. Despite receiving a show cause notice, Unilever continued its deceptive practices.

The order also highlighted regional variations in Unilever’s marketing, with different claims made in countries like Saudi Arabia, the UK, and Bangladesh. The most severe deceptions were found in Pakistan, which the commission deemed unacceptable.

In addition to the Rs60 million penalty, the CCP ordered Unilever to submit a compliance report to its Registrar within 30 days of the order’s issuance.

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