ISLAMABAD – A major crackdown on misleading advertising led Competition Commission of Pakistan (CCP) to recover Rs35 million in penalties from two major companies accused of marketing frozen desserts as ice cream, raising serious concerns about consumer deception in the food industry.
The case emerged after Pakistan Fruit Juice Company (Private) Limited, the producer of the Hico brand, filed complaint alleging that Unilever Pakistan and Friesland Campina Engro were misleading consumers.
According to the complaint, both companies promoted their frozen dessert products as “ice cream” in television commercials and social media campaigns, creating the impression that the products were dairy-based.
After detailed inquiry under the Competition Act, 2010, the commission concluded that companies had violated Section 10 of the law by spreading false and misleading information to consumers. Commission determined that the marketing campaigns had the potential to confuse buyers about the true nature of the products.
CCP imposed hefty fines of Rs75 million on each company. Unilever Pakistan also faced an additional Rs20 million penalty for making comparative claims suggesting its frozen dessert was healthier than traditional dairy ice cream.
Commission relied on standards issued by the Pakistan Standards and Quality Control Authority (PSQCA) and the Punjab Pure Food Regulations 2018. These regulations clearly differentiate between “ice cream” and “frozen desserts.” While ice cream must be made from milk, cream, or other dairy ingredients, frozen desserts may contain edible vegetable oils and fall into a separate product category.
CCP ordered the companies to immediately stop presenting frozen desserts as ice cream, remove all misleading advertisements from television and digital platforms, and provide clear disclosures about the true composition of their products. The companies were also directed to submit compliance reports within the specified timeframe.
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