THE Full Federal Court has upheld an appeal by the Australian Competition and Consumer Commission (ACCC) which had filed a Notice of Appeal against the $1.7 million fine imposed upon Reckitt Benckiser (RB) for contravening Australian Consumer Law (PD 24 May 16).
The Full Court on Fri ordered RB to pay an increased penalty of $6 million for making misleading representations about its Nurofen Specific Pain products.
"This is the highest corporate penalty awarded for misleading conduct under the Australian Consumer Law," ACCC chairman Rod Sims said.
The ACCC said it wanted to send a strong deterrence message, taking into account the long-standing and widespread nature of the conduct, and the substantial sales and profit made from selling the products.
RB has also been ordered to pay the ACCC's legal costs.
Appeal Justices Jagot, Yates and Bromwich said the products were "inherently misleading".
"Contrary to the representations, ibuprofen does not target any particular type of pain. It treats all types of pain precisely the same way," they said.
Between 2011 and 2015 the company sold 5.9 million packets of the specific pain medication, yielding revenue of $45 million.
RB said it was "disappointed" with the court's decision to impose a higher penalty, claiming it was not its intention to mislead the public.
Sims said the ACCC would "continue to advocate for higher penalties for breaches of Australia's consumer laws to ensure that they act as an effective deterrent and are not simply viewed as a cost of doing business".
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