The Competition Commission of Pakistan (CCP) has successfully enforced its order against two frozen dessert manufacturers for misleading consumers by marketing their products as “ice cream,” recovering Rs. 35 million in penalties.
The case originated from a complaint by M/s Pakistan Fruit Juice Company (Private) Limited, makers of “Hico” ice cream, alleging that M/s Unilever Pakistan and M/s Friesland Campina Engro falsely advertised their frozen desserts as ice cream on television and social media.
After a formal inquiry under the Competition Act, 2010, the Commission concluded that both companies disseminated false and misleading information, violating CCP rules. Originally, the CCP had imposed penalties of Rs. 75 million on each company.
Unilever Pakistan faced an additional Rs. 20 million fine for claiming its frozen dessert was healthier than dairy-based ice cream.
The Commission based its decision on standards set by the Pakistan Standards and Quality Control Authority (PSQCA) and Punjab Pure Food Regulations 2018, which clearly distinguish “ice cream” (made from milk, cream, or other dairy ingredients) from “frozen desserts” (which may contain edible vegetable oils).
Both companies were directed to immediately stop presenting frozen desserts as ice cream, remove all misleading advertisements, and disclose accurate product information. They are also required to submit compliance reports within the stipulated timeframe.
The Competition Appellate Tribunal (CAT) upheld the Commission’s findings, reinforcing CCP’s authority in protecting consumer rights.