Frozen dessert ads land firms in trouble as CCP recovers Rs35 million in penalties

The Competition Commission of Pakistan (CCP) has successfully enforced its decision against two leading food companies for deceptive marketing practices, recovering Rs35 million in penalties after a prolonged legal process.

The enforcement followed the dismissal of appeals by the Competition Appellate Tribunal, which upheld the Commission’s determination that the companies had misled consumers by advertising frozen desserts as “ice cream,” in violation of competition law.

The case originated from a complaint filed by M/s Pakistan Fruit Juice Company (Private) Limited, the maker of the Hico brand, alleging that Unilever Pakistan and FrieslandCampina Engro Pakistan promoted their frozen dessert products as ice cream through television and social media advertisements, creating confusion among consumers.

Following an inquiry conducted under the Competition Act, 2010, the CCP concluded that the companies had disseminated false and misleading information, constituting deceptive marketing under Section 10 of the Act.

The Commission had originally imposed penalties of Rs75 million each on the two firms. An additional Rs20 million fine was levied on Unilever Pakistan for making comparative claims portraying its frozen dessert as healthier than dairy-based ice cream.

In reaching its decision, the regulator relied on product classification standards issued by the Pakistan Standards and Quality Control Authority and provisions of the Punjab Pure Food Regulations 2018, which distinguish between dairy-based ice cream and frozen desserts that may contain vegetable oils.

The Commission also directed the companies to cease presenting frozen desserts as ice cream, withdraw misleading advertisements across all platforms, and ensure proper product disclosure to consumers within the prescribed timeframe.

Officials said the successful recovery of penalties highlights the regulator’s continued efforts to enforce compliance and protect consumers from deceptive marketing while maintaining fair competition in the marketplace.