Reckitt Benckiser Pays Rs. 150M Penalty After Losing Appeal in Strepsils Misleading Ads Case

The Competition Commission of Pakistan (CCP) has recovered Rs. 150 million from Reckitt Benckiser Pakistan Limited after its appeal in a misleading advertising case for Strepsils was dismissed.

Background of the Case

• Strepsils was once classified as a medicated sore throat remedy, but after its acquisition by Reckitt in 2005, it was de-registered as a drug.

• Despite this, the company continued to market Strepsils as if it had medicinal properties, misleading consumers and harming competitors.

CCP found this to be a violation of Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices. Consequently, a PKR 150 million fine was imposed.

Enforcement After Appeal Failure

Reckitt Benckiser challenged the fine before the Competition Appellate Tribunal (CAT), but the appeal was dismissed due to non-prosecution.

Following the tribunal’s decision, CCP attached the company’s bank account and recovered the entire penalty amount, as allowed under Section 40(2)(a) of the Competition Act.

This enforcement action underscores CCP’s resolve to crack down on deceptive marketing and ensure fair competition.