Two ice cream companies slapped with fines for engaging in deceptive marketing 

Two companies, selling frozen desserts to consumers as ice creams, have drawn the ire of the Competition Commission of Pakistan (CCP), which has fined both of them Rs170 million, reported 24NewsHD TV channel on Saturday.

The CCP has said that a pasteurized mix, consisting of a combination of milk and milk products, and edible vegetable oils and fats are used in making a dessert, while an ice cream is prepared from milk and other dairy products.     

CCP initiated these proceedings on a complaint filed by M/s Pakistan Fruit Juice Company (Private) Limited, the manufacturers of “Hico” ice cream, in which it was alleged that two firms were engaged in deceptive marketing by portraying their “frozen desserts” as ice creams through advertisements on television and social media campaigns. 

The Commission directed a formal inquiry into the matter and later issued show cause notices to M/s Unilever Pakistan and M/s Friesland Campina Engro, manufacturers and distributors of frozen desserts under the brand names of “Walls” and “Omore,” respectively. 

The CCP bench, comprising members Salman Amin and Saeed Ahmed Nawaz, in its order, inter-alia referred to the Pakistan Standards and Quality Control Authority (PSQCA) PS 969-2010 and the Punjab Pure Food Regulations 2018, which define “frozen dessert” and “ice cream” as two distinct products. 

Additionally, a penalty of Rs20 million was also imposed on M/s Unilever Pakistan for conducting and disseminating false comparisons of their products.

The CCP, in the order, has also directed the undertakings to desist from presenting frozen desserts as ice cream in their advertisements, as it leads to a dissemination of a false and misleading information to the consumers, prohibited pursuant to section 10 of the Competition Act. 

Both companies are thus required to remove such advertisements from digital platforms also and make adequate disclosure about their products. 

A compliance report in this regard is to be submitted to the CCP within 30 days of the order.

Reporter: Ashraf Khan