ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed hefty penalties totaling Rs. 170 million on two leading manufacturers of frozen desserts, M/s Unilever Pakistan and M/s Friesland Campina Engro, for deceiving consumers by falsely marketing their products as “ice cream.”
Each company was fined Rs. 75 million for misrepresenting their “frozen desserts” as ice cream through advertisements and social media campaigns. Additionally, Unilever Pakistan was slapped with an extra Rs. 20 million fine for running false comparative advertisements, claiming their products were healthier than dairy-based ice creams.
The Complaint and Enquiry
The case originated from a complaint by M/s Pakistan Fruit Juice Company (Private) Limited, makers of the renowned “Hico” ice cream brand. They alleged that the two competitors engaged in deceptive marketing practices by misleadingly portraying their frozen desserts as ice cream.
CCP launched a formal inquiry into the matter and subsequently issued show-cause notices to both companies. The hearings were conducted by a CCP bench comprising Members Salman Amin and Saeed Ahmed Nawaz.
Standards Define the Truth
In its decision, CCP referenced the Pakistan Standards and Quality Control Authority (PSQCA) PS 969-2010 and the Punjab Pure Food Regulations 2018. These standards clearly differentiate between “ice cream” and “frozen desserts.”
- Ice Cream: Defined as a dairy-based product made from milk, cream, or similar dairy ingredients.
- Frozen Desserts: Made from a pasteurized mix that includes milk, milk products, and edible vegetable oils.
The order also cited international standards, including regulations from the USA, Australia, and India, where food quality authorities restrict the term “ice cream” to exclusively dairy-based products. Notably, the U.S. Food and Drug Administration (FDA) has penalized companies for mislabeling frozen desserts as ice cream.
Violation of Consumer Protection Laws
CCP concluded that the misleading advertisements violated Section 10 of the Competition Act, which prohibits false and deceptive marketing practices. The Commission emphasized that such tactics misinform consumers and distort fair competition in the market.
Order and Compliance
In addition to the penalties, CCP has directed both companies to immediately:
- Cease all advertisements presenting frozen desserts as ice cream.
- Remove misleading marketing content from digital platforms.
- Make adequate disclosures about their products to ensure consumers are accurately informed.
Both companies have been ordered to submit a compliance report to CCP within 30 days.
The CCP reiterated its mandate to safeguard fair competition and protect consumers from deceptive practices. “Our goal is to ensure open competition in all spheres of commercial and economic activity and to shield consumers from anti-competitive behaviors,” the CCP stated.
This landmark decision underscores the Commission’s commitment to holding companies accountable for misleading practices and sets a precedent for transparency in food marketing.
