KARACHI: August 10, 2024 — The Competition Commission of Pakistan (CCP) has imposed a substantial fine of PKR 60 million on Unilever Pakistan for broadcasting deceptive claims in television commercials for its hygiene and cleansing products, namely ‘Lifebuoy (Care and Protect) Soap’ and ‘Lifebuoy Hand Wash.’
The decision, announced on Friday, underscores the Commission’s commitment to protecting consumers from misleading advertising and ensuring fair competition among businesses.
The CCP’s order marks the conclusion of proceedings that were initiated after a show-cause notice was issued to Unilever Pakistan. The notice highlighted apparent violations of Section 10 of the Competition Act of 2010, which prohibits businesses from engaging in deceptive marketing practices based on false or misleading information.
According to the CCP, the enforcement of prohibitions against deceptive marketing is one of its core mandates. The Commission is tasked with safeguarding consumers from being misled and protecting competitors from anti-competitive behavior that could harm their business interests.
The investigation into Unilever’s practices was sparked by a complaint filed by Reckitt Benckiser, a competitor in the hygiene product market. The complaint specifically targeted Unilever’s claims regarding the effectiveness of Lifebuoy Soap and Hand Wash. Among the claims under scrutiny were assertions of “100% guaranteed protection from germs,” “World’s No. 1 germ protection soap,” and “99.9% germ protection in 10 seconds.” The investigation revealed that these bold claims were accompanied by disclaimers printed in such small fonts that they were nearly impossible for consumers to notice.
The Commission’s inquiry concluded that Unilever Pakistan Limited had indeed misled consumers and harmed other businesses by making unfounded claims about its products. The CCP’s order identified five distinct violations of Section 10 of the Competition Act, particularly regarding health and safety claims that were not backed by reliable scientific evidence. Despite receiving a show-cause notice, Unilever continued to engage in deceptive marketing practices, further compounding the violations.
The order also highlighted regional variations in Unilever’s marketing practices, noting that the wording of product claims differed across countries such as Saudi Arabia, the UK, and Bangladesh. However, the most severe instances of deception were found in Pakistan, a fact that the Commission deemed particularly unacceptable.
In addition to imposing the PKR 60 million fine, the CCP has directed Unilever to submit a compliance report to the Registrar of the Commission within 30 days of the issuance of the order. This report is expected to outline the measures Unilever will take to ensure future compliance with the Competition Act.
The CCP’s actions reaffirm its dedication to fostering a fair market environment, one where consumers are provided with accurate information, and businesses are given a level playing field to compete. By taking a firm stand against deceptive marketing, the Commission aims to promote fair competition and protect the interests of both consumers and businesses across Pakistan.
