The makers of Panadol products have been warned about the use of comparative advertising.
GlaxoSmithKline Consumer Healthcare, Panadol's maker has given the ACCC an undertaking it won't republish or rebroadcast alleged misleading comparative advertisements for 12 months unless it gives seven days notice to the ACCC.The advertisements were published in newspapers and via television commercials across Australia in July and August.
The advertisements compared Panadol Caplets to Herron Capseals and said Panadol Caplets were 'Made in Australia by Australians', whilst Herron Capseals were 'Made in the USA by Americans'. Caplets are 500mg of paracetamol, Capseals are 500mg of paracetamol, enclosed in a gelatin cover. Both are similarly shaped.
"Although factually correct, GlaxoSmithKline neglected to mention that it also produces a similar comparable product to Herron Capseals, the Panadol Gel Caps. Those products are also made in the United States of America", ACCC Chairman, Professor Allan Fels, said today. "In other words Caplets were being compared to Capseals.
"The ACCC has informed GlaxoSmithKline that this sort of comparative advertising raises concerns under section 52 of the Trade Practices Act 1974 which prohibits misleading and deceptive conduct or conduct which is likely to mislead or deceive.
"The ACCC has already stated that particular care is needed when comparisons are made between products of competing traders so that the comparisons don't mislead. Advertisements must be considered as a whole, and they must be in context. A comparison can be misleading by the omission of information that would be necessary to render the comparison fair. "Comparative advertising is good for competition. Unlike some countries, Australia does not prohibit competitors from comparing products. But special care is needed to ensure that comparisons are not misleading.
Both Herron and Panadol make their Tablets and Caplets in Australia and both Herron and Panadol have their Gelcaps coated with gelatin in the USA. GlaxoSmithKline Consumer Healthcare is of the opinion that their comparative advertisements are not misleading. "Honest advertising and selling practices benefit small business and consumers. Advertising and Selling is the focus of the ACCC's third Competing Fairly Forum to be broadcast to more than 70 towns across regional, rural and outback Australia today (2 October 2001).
The Forum aims to provide accessible information to rural and regional businesses and consumers through supporting local and national organisations; to present issues that are relevant to those communities; and, to obtain feedback about your trade practices concerns". Information about the Third Competing Fairly Forum can be found on the ACCC's website.
The recent advertisements by both GlaxoSmithKline and Herron have played on the debate of 'Australian made' versus 'Australian owned'. GlaxoSmithKline said that its most recent advertisements were meant to communicate to consumers that 'Australian owned' does not necessarily mean 'Australian made'. Information regarding Country of Origin claims and how the Act comes into play in this area can be found on the ACCC's website.