The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) findings against Unilever Pakistan and FrieslandCampina Engro for misleading consumers by marketing frozen desserts as ice cream.
According to a press release, the tribunal agreed with the CCP’s conclusion that presenting frozen desserts as ice cream amounted to false and misleading information, violating Pakistan’s competition and consumer protection laws.
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Case Filed Over Deceptive Advertising
The case originated from a complaint filed by Pakistan Fruit Juice Company Private Limited, the maker of Hico ice cream, which accused the two companies of deceptive marketing practices through television and social media advertisements.
Following a formal inquiry, the CCP issued show-cause notices to Unilever Pakistan and FrieslandCampina Engro, which sell frozen dessert products under the Walls and Omore brands, respectively.
Regulations Clearly Distinguish Ice Cream and Frozen Desserts
In its findings, the CCP relied on standards set by the Pakistan Standards and Quality Control Authority (PSQCA) and the Punjab Pure Food Regulations 2018.
Under these regulations:
- Ice cream must be made from milk, cream, or other dairy ingredients
- Frozen desserts are produced from a pasteurised mix that may include milk products and edible vegetable oils
The CCP concluded that advertising frozen desserts as ice cream misled consumers about the nature and composition of the products.
Tribunal Reduces Penalties but Upholds Violations
While upholding the CCP’s decision, the Competition Appellate Tribunal reduced the financial penalties imposed on both companies.
The fine for each company was reduced from Rs75 million to Rs15 million. In addition, an extra penalty imposed on Unilever Pakistan for running advertisements that falsely compared its frozen dessert to dairy ice cream was reduced from Rs20 million to Rs5 million.
Reduction Not a Clean Chit, Tribunal Clarifies
The tribunal emphasized that the reduction in penalties should not be interpreted as condoning the violations.
It said the relief was granted as a measured exercise of appellate discretion, guided by principles of proportionality and mitigating circumstances, while reaffirming that the marketing practices breached the Competition Act.
Implications for Food Marketing in Pakistan
Consumer rights experts say the ruling sends a strong signal to food and beverage companies to ensure accurate labeling and honest advertising, especially for products where ingredient composition materially affects consumer choice.
The decision reinforces the CCP’s role in curbing deceptive marketing and strengthening consumer trust in Pakistan’s packaged food industry.
