Pakistan’s Competition Commission fines Rs 75 million on Unilever and Friesland fined for promoting “frozen dessert” as

The Competition Commission of Pakistan (CCP) charged Rs 75 million fine each from Unilever Pakistan, manufacturer and distributor of Walls and Friesland Campina Engro, of Omore. The CCP has put a fine on them for fooling consumers by marketing their frozen desserts as “ice-cream.”   

Manufacturer of Hico ice-creams, Pakistan Fruit Juice Company (Pvt) Limited, lodged a complaint regarding deceptive practices followed by the two frozen desserts companies after which the CCP acted. The complaint reads that these companies falsely claimed their “frozen desserts” as ice cream in TV ads and social media campaigns. 

The @CCP_Pakistan imposes PKR 75M penalties on two frozen dessert manufacturers for #misleading consumers by advertising frozen desserts as 'ice cream'.https://t.co/jga3lf2QL2#competitionlaw #deceptivemarketing #ConsumerRights #pakistan pic.twitter.com/YgsEo0ZlhT

— Competition Commission of Pakistan (@CCP_Pakistan) December 20, 2024

Taking cognizance of the complaint the CCP found out that the companies marketed “frozen desserts” as “ice cream,” when only dairy-based products can use the term. It also issued a show-cause notices to Unilever Pakistan and Friesland Campina Engro. These two companies distribute their frozen desserts under brands “Walls” belonging to former and “Omore” of the latter.  

The CCP in its order stated, “It is held that a false and misleading impression of ‘frozen dessert’ as ‘ice cream’ was created and continued by the Respondents through their advertisements, in order to make the consumers believe that ‘frozen dessert’ products are also ‘ice cream.’” 

In its order it further highlighted that the companies kept hidden the true nature of their products and took economic advantage at the cost of consumer welfare. The commission cited the Punjab Pure Food Regulations of 2018 and the Pakistan norms and Quality Control Authority (PSQCA) norms during the hearings, which were chaired by CCP members Salman Amin and Saeed Ahmed Nawaz. According to these standards, "frozen desserts" are defined as including a combination of milk, milk products, and vegetable oils, while "ice cream" is defined as a product comprised predominantly of dairy ingredients. 

The CCP imposed additional fine of Rs 20 million on Unilever Pakistan as it also promoted its frozen desserts as healthier than dairy-based ice creams, violating the Competition Act. Its bench, comprising Salman Amin and Saeed Ahmed Nawaz, ordered the companies to stop misleading advertisements, clarify product ingredients, and ensure accurate labeling. Non-compliance within 30 days would lead to further penalties.