CCP recovers Rs 35m in deceptive ‘ice cream’ case

ISLAMABAD: The Competition Commission of Pakistan (CCP) on Wednesday successfully enforced its order against two manufacturers of frozen desserts for misleading consumers by advertising their products as “ice cream,” and has recovered Rs35 million in penalties from them.

The case was initiated on a complaint filed by M/s Pakistan Fruit Juice Company (Private) Limited, manufacturers of “Hico” ice cream, alleging that M/s Unilever Pakistan and M/s FrieslandCampina Engro were engaged in deceptive marketing by portraying their frozen dessert products as ice cream through television and social media advertisements, a news release said on Wednesday.

Following a formal enquiry under the Competition Act, 2010, the Commission concluded that the undertakings had disseminated false and misleading information to consumers in violation of Section 10 of the Act.

The Commission had originally imposed penalties of Rs 75 million each on the two companies. Additionally, a penalty of Rs 20 million was imposed on Unilever Pakistan for making false comparative claims by portraying its frozen dessert as healthier than dairy-based ice cream.

In its order, the Commission relied on standards issued by the Pakistan Standards and Quality Control Authority (PSQCA) and the Punjab Pure Food Regulations 2018, which clearly distinguish between “ice cream” and “frozen desserts.” While ice cream is made from milk, cream, or other dairy ingredients, frozen desserts may include edible vegetable oils and are classified as a separate product category.

The Commission had directed the undertakings to cease and desist from presenting frozen desserts as ice cream, remove all misleading advertisements across platforms, and make adequate disclosures regarding their products.

The companies were also required to submit compliance reports within the prescribed time frame.

The Competition Appellate Tribunal (CAT) upheld the Commission’s findings, affirming that the conduct constituted deceptive marketing under the law.

The successful recovery of penalties marks an important step in enforcement of the Commission’s orders, reinforcing the CCP’s commitment to protecting consumers from deceptive marketing practices while ensuring fair competition in the marketplace. APP