Nurofen manufacturer fined $A1.7m
Reckitt Benckiser fined nearly $2 million for misleading consumers.
Pharmaceuticals manufacturer Reckitt Benckiser has been fined $A1.7 million for misleading consumers about specific pain products when they all contained the same active ingredient.
The Australian Federal Court today determined Reckitt Benckiser engaged in misleading conduct by advertising each of its products were specifically formulated to treat back, period, migraine or headache pain when they were virtually identical.
The products contained 342mg of ibuprofen lysine – a different formula from standard Nurofen products.
“None of the four products is any more or less effective than the others in treating any of the particular symptoms,” Justice James Edelman says.
In his judgment, Justice Edelman said he couldn’t quantify how much profit was made from consumers being misled. He also acknowledged that while customers potentially suffered financial loss by paying more for pain-specific products, they were still effective painkillers.
He ordered the company to pay the nearly $2 million compensation, which was less than the $A6 million demanded by the Australian Competition and Consumer Commission but more than the $A1.1 million suggested by Reckitt Benckiser, by the end of next month.
The offending Nurofen products were pulled from Australian and New Zealand shelves in March, following an announcement the Commerce Commission is investigating the company in this country. They were replaced with new packaging that clarified each of the products in the range is equally effective for all pain.
A spokeswoman for Nurofen acknowledged the court’s decision and said: “Nurofen did not intend to mislead consumers. However, we recognise that we could have done more to assist our consumers in navigating the Nurofen specific pain range.”
The New Zealand investigation continues.
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Chelsea Armitage
Fri, 29 Apr 2016
Fri, 29 Apr 2016
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Nurofen manufacturer fined $A1.7m
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