The Competition Commission of Pakistan (CCP) has imposed penalties of Rs. 75 million each on two manufacturers of frozen desserts for misleading consumers by advertising their products as “ice cream.”
This action followed a complaint by M/s Pakistan Fruit Juice Company (Private) Limited, the makers of “Hico” ice cream, which accused M/s Unilever Pakistan (maker of “Walls”) and M/s Friesland Campina Engro (maker of “Omore”) of deceptive marketing. These companies were found to have portrayed their “frozen desserts” as ice cream in televised ads and social media campaigns.
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Following a formal inquiry, the CCP issued show-cause notices to both companies. The CCP’s bench, including Mr. Salman Amin and Mr. Saeed Ahmed Nawaz, referred to the Pakistan Standards and Quality Control Authority (PSQCA) PS 969-2010 and the Punjab Pure Food Regulations 2018, which distinguish between “frozen dessert” and “ice cream.” According to these standards, ice cream is made from milk, cream, or dairy products, while frozen desserts contain milk, milk products, and edible vegetable oils.
In addition to the Rs. 75 million penalty, M/s Unilever Pakistan was fined Rs. 20 million for misleading consumers in advertisements by falsely portraying their products as healthier than dairy ice cream, violating Section 10(2)(c) of the Competition Act.
The CCP’s order also referenced international precedents from the USA, Australia, and India, where food standards authorities have specified that only dairy-based products can be labeled as “ice cream.” For example, the US Food and Drug Administration (FDA) had previously penalized a company for misbranding frozen desserts as ice cream.
As part of the ruling, the CCP directed the companies to stop misrepresenting their frozen desserts as ice cream in advertisements and to remove such misleading content from digital platforms. Both companies are required to submit a compliance report to the CCP within 30 days.
