The Competition Appellate Tribunal (CAT) has upheld the findings of the Competition Commission of Pakistan (CCP) against Unilever Pakistan and Friesland Campina Engro for engaging in misleading ice cream ads.
The tribunal reduced the penalty for each company from Rs. 75 million to Rs. 15 million. Unilever’s additional fine for claiming its frozen dessert was healthier than dairy ice cream was reduced from Rs. 20 million to Rs. 5 million.
The CCP had launched proceedings following a complaint by Pakistan Fruit Juice Company, the maker of Hico ice cream. The complaint alleged that Unilever and Friesland Campina Engro misrepresented their frozen desserts as ice cream in television and social media ads.
The Commission relied on standards from the Pakistan Standards and Quality Control Authority and the Punjab Pure Food Regulations 2018, which clearly define ice cream as a product made from milk, cream, or other dairy ingredients. Frozen desserts, by contrast, may include pasteurized mixes, milk products, and edible vegetable oils.
The CCP directed both companies to stop promoting frozen desserts as ice cream, emphasizing that such misleading ice cream ads violated Section 10 of the Competition Act by providing false information to consumers.
The Competition Appellate Tribunal noted that the reduction of penalties does not condone the violations. It was a calibrated exercise of appellate discretion, taking proportionality and mitigating circumstances into account.
Industry experts said the ruling highlights the importance of truthful advertising and adherence to consumer protection standards. Companies are reminded that transparency in labeling is essential to maintain consumer trust and comply with national regulations.
In other related news also read Omore and Walls Hit with Massive Fine for Deceptive Marketing Practices
The tribunal’s decision sets an important precedent against misleading ice cream ads in Pakistan, sending a clear message to manufacturers about ethical marketing practices.
