CCP fines 3M Pakistan Rs10mn over Scotch-Brite ‘deceptive marketing’

The Competition Commission of Pakistan has fined 3M Pakistan Rs10 million for a misleading comparison between its Scotch-Brite scrubber and Colgate-Palmolive Pakistan's Max Scrub, Business Recorder reported. The penalty falls under Section 10 of the Competition Act, 2010, and stems from a complaint lodged by Colgate-Palmolive over a marketing video. According to a CCP statement issued on Tuesday, the clip showed Max Scrub appearing badly worn after 20 minutes of washing, while Scotch-Brite looked in better shape.

3M disputed the authenticity of the video and argued that a staff member had carried out the demonstration privately, not on the firm's behalf. The commission nonetheless treated the conduct as the company's responsibility, because a regional sales manager admitted making the comparison while working on the campaign. It also noted that 3M had not substantiated its comparison, and a third-party laboratory test it did not rebut reported comparable results for the two products.

3M has been ordered to refrain from repeating similar comparisons involving Max Scrub or any other rival's comparable product. The company must file a compliance report on the penalty payment within 60 days, and it faces an extra Rs50,000 for each day after the order date if it fails to comply.