CCP issues show cause notice to company for deceptive marketing practices

ISLAMABAD, March 10: The Competition Commission of Pakistan (CCP) while concluding an enquiry has issued a show cause notice to Colgate-Palmolive Pakistan Limited for prima facie indulging into deceptive marketing practices in violation of Section 10 of the Competition Act, 2010.
CCP had received a complaint from Reckitt Benckiser Pakistan Limited alleging that Colgate-Palmolive Pakistan Limited, while marketing its products ‘Max All Purpose Cleaner’ (Max APC), used claims of “99.9% Bacteria Free” and “24 Hours Long Lasting Freshness” on the outer packaging of their product, along with claims that the product protects against “Cold and Flu”, “Skin Infections” and “Food Poisoning”, with a disclaimer reading “Based on laboratory testing with concentrate usage”, without any reasonable basis.
The complaint further alleged that Colgate-Palmolive Pakistan Limited issued a trade letter which stated that Max APC offered for a lesser price a quantity of 50ml more than Reckitt Benckiser Pakistan Limited’s product ‘Dettol Surface Cleaner’ (Dettol). They also suggested that Max APC is a more effective product than Dettol, thereby discrediting the properties and use of Dettol, without any result based testing to substantiate the same.
CCP’s Office of Fair Trade (OFT) initiated an enquiry against the claims made by Colgate-Palmolive Pakistan Limited and concluded that the Respondent had indeed been using the respective claims without sufficient test based results to substantiate the same, thereby violating Section 10 of the Competition Act. A show cause notice has been issued to Colgate-Palmolive Pakistan Limited and the company has been called upon for hearing on a given date.
CCP is mandated under the Competition Act to ensure fair competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from deceptive marketing practices.-Sabah