Nurofen facing $6m headache
The makers of Nurofen should be fined $6 million for misleading conduct, the Australian Competition and Consumer Commission (ACCC) has told the Federal Court.
The consumer watchdog has already won its case against Reckitt Benckiser for a range of âpain specificâ products, which all contained the same ingredient and did the same thing.
However, in a hearing to determine penalties, lawyers for Reckitt Benckiser told the court that ârationalâ consumers would not think a pain-specific product was any more effective than a regular one.
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The products promised to relieve either back pain, period pain, tension headache or migraine, even though it is not possible to target pain relief in such a manner.
All of the products contained the exact same active ingredient: ibuprofen lysine 342mg.
The barrister for the ACCC, Katrina Banks-Smith SC, said Reckitt Benckiser made âsubstantial profitsâ from its misleading marketing and a large fine was warranted.
âThere needs to be some serious taking away of profit,â she said.
Ms Banks-Smith SC told the court that consumers had been financially harmed over the space of five years as the pain-specific products were sold at almost double the price of Nurofenâs standard range.
âThey purchased a product they thought was special and it wasnât. They were misled,â she said.
The ACCC also argued Nurofenâs competitors were disadvantaged as there was less shelf space available.
In December, the company was given three months to withdraw the products from sale.
In the interim, it agreed to place stickers on the products to correct the misleading claims made on the packaging.
However, lawyers for the ACCC said those stickers were being obscured in some supermarkets.
Ms Banks-Smith said it was proved the company lacked a âculture of complianceâ and asked the court to consider that in its penalty decision.
During the hearing, Justice James Edelman joked the weight of evidence may induce a headache in anyone reading it.
âI can suggest some pain relief products your Honour,â the ACCCâs barrister replied.
ABC TVâs The Checkout program highlighted the marketing tactic in 2013, and Nurofen was awarded a Shonky Award for the practice by consumer group CHOICE in 2010.
âRationalâ consumers wouldnât be misled, company says
The barrister for Reckitt Benckiser, Matthew Darke SC, said a consumer who bought, for example, a migraine-specific product still got relief from that ailment.
âThe product was developed to treat migraine pain ⌠and thatâs what it did,â Mr Darke said.
Mr Darke said a ârationalâ consumer would not purchase a pain-specific product thinking it was more effective than a regular pain reliever.
Justice Edelman asked why a consumer would therefore pay a premium for a product if they knew it was identical.
âWhy would a consumer pay more than 100 per cent more?â he said
Mr Darke replied: âEase of selection,â adding it would save some consumers reading the back of the box.
â[A consumer with a migraine] might well pick up the âmigraineâ product⌠simply because no further inquiry is required,â Mr Darke said.
âOne doesnât need to look on the back of the pack.â
Justice Edelman said the argument attributed âa very low level of intelligence to purchasersâ.
He has reserved his decision on the penalty against the company until next week.
-ABC
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