The Competition Commission of Pakistan has authority to review mergers, hold contracts with prohibited terms infructuous, penalize deceptive and anticompetitive marketing if it harms the interests of the competitors and/or the consumers. A case was initiated by M/s Reckitt Benckiser Pakistan Limited, the parent company of Dettol, which manufactures antiseptic soap/hand-wash products, against Lifebuoy a subsidiary company of Unilever which manufactures similar/identical products, for the reason that the latter claimed 100% proven germ protection in its advertisement which stated that “Jaraseem se 100% yaqeeni hifazat” (which means that 100% protection from germs). Reckitt Benckiser contended that these claims could not be scientifically established as it was impossible for a product to be successful in eradicating 99.9% of germs in 10 seconds.
The Commission formed an Enquiry Committee for investigation of the matter. The Committee concluded that the action could reasonably have harmed the business interests of the Complainant as well as the consumers relying upon the principle laid down in the case of Zong vs Ufone which related to the interests of the consumers, and therefore the Commission imposed a total fine of PKR 60 million on Unilever – Pakistan.
In view of the above findings of the Commission, it focuses its attention in deciding issues relating to anticompetitive practices on the harm that could be caused to the consumers deceptively, additionally it also keeps in view the harm that could be caused to the other competitors in the market.
In view of the findings of the Commission in the above-cited case, the suppliers and distributors need to be cautious in marketing their products and keep in view how it may affect the consumer and how it would impact the competitors of the similar product in the market.
Khalid A. Rehman, IDI Country Expert for agency and distribution in Pakistan
