CCP Penalises Misleading Ice Cream Marketing Practices

The Competition Commission of Pakistan has effectively enforced its ruling against two major food sector entities for engaging in deceptive marketing practices, resulting in the recovery of Rs35 million in penalties following an extended legal process.

The enforcement action followed the dismissal of appeals by the Competition Appellate Tribunal, which upheld the Commission’s findings that the companies had misrepresented frozen dessert products as “ice cream,” in contravention of applicable competition laws.

The matter originated from a complaint filed by Pakistan Fruit Juice Company (Private) Limited, the manufacturer of the Hico brand, alleging that Unilever Pakistan and FrieslandCampina Engro Pakistan marketed their frozen dessert offerings as ice cream through electronic and digital media, thereby creating consumer confusion.

Following a detailed inquiry under the Competition Act 2010, the Commission determined that the companies had disseminated misleading and inaccurate information, constituting deceptive marketing practices under Section 10 of the Act.

Initially, penalties of Rs75 million each were imposed on both companies. Additionally, a further Rs20 million fine was levied on Unilever Pakistan for making comparative claims suggesting that its frozen dessert products were healthier than dairy-based ice cream.

In arriving at its determination, the Commission relied on product classification standards issued by the Pakistan Standards and Quality Control Authority, as well as the provisions of the Punjab Pure Food Regulations 2018, which clearly distinguish between dairy-based ice cream and frozen desserts containing alternative ingredients such as vegetable oils.

The Commission also directed the companies to immediately discontinue the misrepresentation of frozen desserts as ice cream, withdraw all misleading advertisements across media platforms, and ensure accurate product disclosures within the prescribed compliance period.

Officials noted that the successful recovery of penalties underscores the regulator’s commitment to enforcing compliance, safeguarding consumer interests, and promoting fair competition within the marketplace.