The Competition Commission of Pakistan (CCP) has enforced its order against two frozen dessert manufacturers for misleading marketing, recovering Rs35 million in penalties.

 

The case was initiated following a complaint filed by M/s Pakistan Fruit Juice Company (Private) Limited, which produces “Hico” ice cream. The company alleged that M/s Unilever Pakistan’s Magnum and M/s Friesland Campina Engro’s Omore were advertising their frozen dessert products as “ice cream” on television and social media.

 

After conducting an inquiry under the Competition Act, 2010, the Commission found that both companies had “disseminated false and misleading information” by presenting frozen desserts as ice cream. 

 

The CCP had initially imposed a penalty of Rs75 million on each company.

 

Unilever Pakistan was also fined an additional Rs20 million for claiming that its frozen dessert product was “healthier than dairy-based ice cream”.

 

The commission said that its findings were based on definitions provided by the Pakistan Standards and Quality Control Authority (PSQCA) and the Punjab Pure Food Regulations of 2018. 

 

These regulations distinguish between “ice cream”, which is made from milk, cream or other dairy ingredients, and “frozen desserts”, which may contain edible vegetable oils.

 

According to the CCP, both companies were directed to “immediately stop presenting frozen desserts as ice cream”, remove all related advertisements and provide accurate product disclosures.

 

They were also instructed to submit compliance reports within the specified timeframe.

 

The Competition Appellate Tribunal (CAT) has reviewed the case and upheld the commission’s decision, supporting the findings and its authority in the matter.