The Consumer Protection Authority of India has issued an order ordering GlaxoSmithKline (GSK) Consumer Healthcare Ltd to cease advertising Sensodyne products in India. Naaptol Online Shopping Ltd has also been ordered by the Central Consumer Protection Authority (CCPA) to pay a penalty of Rs 10 lakh for misleading advertisements and unfair trade practices. The CCPA took cognizance of the matter and passed orders against GlaxoSmithKline (GSK) Consumer Healthcare on January 27 and against Naaptol on February 2 this year, the consumer affairs ministry said in a statement on Wednesday.
In its order, the CCPA has directed GlaxoSmithKline (GSK) Consumer Healthcare to cease all advertisements for Sensodyne in the country within seven days of issuing the order, since the ads featured dentists outside India endorsing the products. As dental regulations in India clearly prohibit public endorsement of products or drugs, the CCPA ruled that GSK Consumer Healthcare should not be allowed to circumvent the law. Instead, they should show foreign practitioners how they can exploit consumer anxiety about tooth sensitivity.
‘Therefore, advertisement of Sensodyne products in India which shows endorsements by dentists practising outside India qualifies as ‘misleading advertisement’ in terms of Section 2 (28) of the Consumer Protection Act, 2019,’ the order said. The CCPA has also instructed the Director General (Investigation) to submit a report within 15 days after investigating the claims ‘recommended by dentists worldwide’, ‘world’s no 1 sensitivity toothpaste’ and ‘clinically proven relief, works in 60 seconds’ as well as the documents submitted by the company in support of these claims.
‘We confirm the receipt of the order from the CCPA. While we are looking into it in detail, we would like to clarify that our marketing initiatives are compliant with the applicable laws and industry guidelines. We are a responsible and compliant company which is committed to the welfare of its consumers,’ GSK Consumer Healthcare spokesperson said in a statement.
The CCPA also passed a suo moto order against Naaptol Online Shopping Ltd, asking the firm to cease misleading advertisements for ‘Set of 2 Gold Jewelry’, ‘Magnetic Knee Support’ and ‘Acupressure Yoga Slippers’. The body has also imposed a fine of Rs 10 lakh on Naaptol, saying its misleading advertisements have had a far-reaching impact on numerous consumers as Naaptol runs a 24×7 channel and is broadcast across various languages in the country.
According to the order, Naaptol must clearly indicate in the episodes offering products for sale that it is a recorded episode. This means that it does not display the inventory status of the products. In addition, Naaptol must immediately discontinue any practices that create ‘artificial scarcity’ of products, including showing that the product is not available today if it will be available to the public within the next 30 days.
In addition, the company has been directed to clearly display on its channel or platform running a promotion, that it is a pre-recorded episode. The CCPA has also directed Naaptol to resolve complaints filed between May 2021 and January 2022 and submit a report within 15 days. Data from the National Consumer Helpline shows 399 complaints have been filed against Naaptol between June 2021 and January 25 this year.
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