Reckitt Benckiser, the maker of Nurofen, has been fined $6M million for misleading consumers.
In 2015, the Federal Court of Australia found that Reckitt Benckiser misled consumers when marketing its Nurofen ‘specific pain range’ products. The advertisements claimed the products relieved specific pain, such as back pain, period pain or headaches.
ACCC sought a fine of $6M against Reckitt Benckiser, but Justice Edelman imposed $1.7M. ACCC chairman, Rod Sims was not satisfied with the outcome stating, “It is disappointing a fine of $1.7 million was imposed for a company this size.” You can read more about the original case here.
The ACCC appealed the matter on the basis that $1.7 million is not an adequate deterrent, especially considering the products netted $45 million in revenue for the company.
In December 2016, the Full Court of the Federal Court of Australia allowed the appeal and ordered that Reckitt Benckiser pay an increased pecuniary penalty of $6 million dollars, in addition the ACCC’s costs.
You can read the full article here.