The Competition Appellate Tribunal has upheld findings by the Competition Commission of Pakistan that Unilever Pakistan and FrieslandCampina Engro misled consumers by advertising frozen desserts as ice cream, according to a press release issued on Tuesday.
While affirming the violations, the tribunal reduced the penalty on each company from Rs75 million to Rs15 million, citing proportionality and mitigating circumstances. It clarified that the reduction did not amount to condoning the conduct.
The case was triggered by a complaint from Pakistan Fruit Juice Company Private Limited, the manufacturer of Hico ice cream, which accused the two firms of deceptive marketing through television and social media campaigns.
Unilever Pakistan and FrieslandCampina Engro market frozen desserts under the Walls and Omore brands, respectively.
Following a formal inquiry, the CCP issued show-cause notices and concluded that the companies had breached Section 10 of the Competition Act by presenting frozen desserts as ice cream.
In reaching its decision, the Commission relied on standards set by the Pakistan Standards and Quality Control Authority and the Punjab Pure Food Regulations 2018. These rules draw a clear distinction between ice cream and frozen desserts.
Under the regulations, ice cream is defined as a product made from milk, cream, or other dairy ingredients. Frozen desserts, in contrast, are produced from a pasteurised mix that may include milk products and edible vegetable oils.
The CCP held that portraying frozen desserts as ice cream constituted false and misleading information for consumers and ordered both companies to cease such representations in their advertisements.
In a separate finding against Unilever Pakistan, the tribunal also upheld a penalty related to advertisements that falsely compared its frozen dessert with dairy ice cream. That fine was reduced from Rs20 million to Rs5 million.
The tribunal said the relief granted reflected appellate discretion and did not undermine the seriousness of the violations established by the Commission.
