NUROFEN FALSE ADVERTISING FINE INCREASED TO RECORD AMOUNT

Written on the 16 December 2016

NUROFEN FALSE ADVERTISING FINE INCREASED TO RECORD AMOUNT RECKITT Benkiser has been slogged an extra $4.3 million by the Federal Court for misleading advertising of its Nurofen Specific Pain products after an Australian Competition and Consumer Commission (ACCC) appeal against the penalty was upheld.

The UK-based company must now pay a revised penalty of $6 million - the highest recorded for misleading conduct under Australian Consumer Law.

The Full Court found that the initial penalty of $1.7 million was manifestly inadequate given the need for deterrence and the substantial consumer loss suffered.

"The ACCC welcomes this decision, having originally submitted that a penalty of $6 million or higher was appropriate given the longstanding and widespread nature of the conduct, and the substantial sales and profit that was made," says ACCC chairman Rod Sims.

In their joint decision, Justices Jagot, Yates and Bromwich state: "The objective of any penalty in this case must be to ensure that Reckitt Benckiser and other 'would-be wrongdoers' think twice and decide not to act against the strong public interest".

In December 2015, the court found that Reckitt Benckiser made representations on its website and product packaging that Nurofen Specific Pain products were each formulated to specifically treat a particular type of pain, when this was not the case.

In fact, each Nurofen Specific Pain product contains the same active ingredient, ibuprofen lysine 342mg, which treats a wide variety of pain conditions and is no more effective at treating the type of pain described on its packaging than any of the other Nurofen Specific Pain products.

On 29 April 2016, the trial judge Justice Edelman ordered Reckitt Benckiser to pay a penalty of $1.7 million for making misleading representations about its Nurofen Specific Pain products.

The Nurofen decision follows a similar case where Dulux was recently fined $400,000 for false advertising in relation to its Weathershield and InfraCOOL paints.

Sims says the ACCC will continue to advocate for higher penalties for breaches of consumer law to deter other companies from making misleading claims.

Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter