GlaxoSmithKline (GSK) Consumer Healthcare has agreed to pay a penalty of Rs 10 lakh as mandated by India's Central Consumer Protection Authority (CCPA) against "misleading" advertisements of Sensodyne toothpaste, sources told CNBC-TV18 on Wednesday.
On March 22, the CCPA ordered GSK to discontinue advertisements for Sensodyne which make the claims such as 'recommended by dentists worldwide' and 'world's No.1 sensitivity toothpaste' within seven days. CCPA says no cogent study was submitted by GSK to substantiate the claims.
UK-based GlaxoSmithKline's Indian subsidiary has also withdrawn an appeal filed in the National Consumer Disputes Redressal Commission (NCDRC) against the consumer protection regulator, sources said.
This implies that GSK by agreeing to pay the penalty and withdraw all the advertisements making such claims under Sensodyne product range from television, Facebook, Twitter, YouTube, and other platforms, will have to now rework the entire advertising strategy.
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Confirming the development, CCPA sources close to the development said, "More than the quantum of the penalty, it is important to note that GSK admitted that their ads regarding Sensodyne products were misleading and it sends the right message to the industry regarding the government’s action and awareness against misleading ads and claims."
In March 2022, CCPA had ordered the discontinuation of certain misleading advertisements of Sensodyne toothpaste and imposed a Rs 10 lakh penalty.
Post the orders of the central consumer protection authority, GSK had challenged and made a plea against the orders at NCDRC and in the first hearing itself, the Disputes Redressal Commission is understood to have dismissed the plea moved by GSK and asked them to withdraw the plea and pay up the penalty, sources said.
On February 9, 2022, the CCPA passed an order directing the discontinuation of the advertisement of Sensodyne products, which show endorsement by foreign dentists. The CCPA had initiated suo-moto action against the advertisement of Sensodyne products on various platforms, including television, Youtube, Facebook, and Twitter.
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The ads show dentists practising outside India endorsing the use of Sensodyne products, namely Sensodyne Rapid Relief and Sensodyne Fresh Gel for protection against teeth sensitivity. These advertisements claimed Sensodyne is 'recommended by dentists worldwide,' is 'world's No. 1 sensitivity toothpaste,' promises 'clinically proven relief, and works in 60 seconds.'
"After examination of the response submitted by the company, CCPA observed that the two market surveys submitted by the company in support of its claims 'recommended by dentists worldwide' and 'world's No.1 sensitivity toothpaste' made in the advertisements were conducted only with dentists in India.
"No cogent study or material was submitted by the company to substantiate the claims made in the advertisements or indicate any worldwide prominence of Sensodyne products. Thus, the claims were observed to be bereft of any reason or justification," the ministry said.
With respect to the claims of 'clinically proven relief, works in 60 seconds', the CCPA had written to the Drugs Controller General of India (DCGI) and Central Drugs Standard Control Organization (CDSCO) to furnish its comments on the correctness of the claims made by the company.
Post action from CCPA, CDSCO had directed the Assistant Drug Controller, Licensing Authority, Silvassa to investigate the claims made by the company since the product in question is manufactured under a cosmetic license granted by State Licensing Authority, Silvassa.
The Assisting Drug Controller came back to the CCPA stating that the claims made by the company are under investigation and further action will be initiated after the hearing process.
In view of the communication received from CDSCO and Assistant Drug Controller, Licensing Authority, Silvassa as regards the claim of "clinically proven relief, works in 60 seconds," the matter is also pending with Assistant Drug Controller, State Licensing Authority, Silvassa.
To safeguard consumer interest, CCPA has issued two advisories. The first advisory was issued on January 20, 2021, calling industry stakeholders to cease making misleading claims that take advantage of the COVID-19 pandemic situation and are not supported by any competent and reliable scientific evidence.
The second advisory was issued on November 1, 2021, highlighting compliance with the provisions of Consumer Protection (e-commerce) Rules, 2020, which require every marketplace e-commerce entity to prominently display all information provided to it by the seller under Rule 6 (5), including name, designation and contact information of the grievance officer of the seller.
First Published: Jun 1, 2022 4:20 PM IST
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