The Competition Commission of Pakistan (CCP) while concluding an enquiry has issued a show cause notice to Proctor and Gamble Pakistan for indulging in alleged deceptive marketing practices in violation of Section 10 of the Competition Act, 2010.
CCP received a complaint from Reckitt Benckiser Pakistan alleging that Proctor and Gamble had launched a marketing campaign for one of its products, ‘Safeguard’, wherein the company claimed without reasonable basis that Safeguard is “Pakistan’s No.1 rated anti-bacterial soap”.
An enquiry conducted by the CCP’s Office of Fair Trade (OFT) into the matter concluded that Proctor and Gamble failed to provide substantial justification for its product ‘Safeguard” being “Pakistan’s No.1 rated anti-bacterial soap”.
According to the enquiry, the false claim has thus resulted in distribution of false and misleading information to consumers related to the quality of their product in violation of Section 10 of the Competition Act.
It further stated that due to this claim, the general public may interpret Safeguard to be Pakistan’s No.1 anti-bacterial soap, without facts to back up the claim, leading them to prefer Safeguard over other competing anti-bacterial soaps.
This conduct is capable of harming the business interests of its competitors including Reckitt Benckiser, which is a violation of Section 10 of the act. Therefore, a show cause notice has been issued to Proctor and Gamble, and the company has been called for a hearing.
CCP is mandated under the Competition Act, 2010 to ensure fair competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive practices including deceptive marketing.
