The Competition Commission of Pakistan (CCP) imposed fines of Rs75 million ($269,530) each on Unilever Pakistan and Friesland Campina Engro, manufacturers and distributors of Walls and Omore products respectively, for “misleading consumers” by marketing their products, “frozen desserts”, as “ice cream.”
The action followed a complaint from Pakistan Fruit Juice Company, the manufacturer of “Hico,” alleging deceptive practices by these companies.
Companies advertised “frozen desserts” as “ice cream”
The CCP determined that the two companies advertised “frozen desserts” as “ice cream,” a term reserved for dairy-based products.
In its written order, the CCP stated, “It is held that a false and misleading impression of ‘frozen dessert’ as ‘ice cream’ was created and continued by the Respondents through their advertisements, in order to make the consumers believe that ‘frozen dessert’ products are also ‘ice cream.’”
The commission further highlighted that the companies did not disclose the true nature of their products, taking economic advantage at the expense of consumer welfare.
The ruling referenced standards set by the Pakistan Standards and Quality Control Authority (PSQCA) and Punjab Pure Food Regulations 2018, which differentiate between “ice cream” and “frozen desserts.” The former is made from milk or dairy products, while the latter uses vegetable oils and other ingredients. These distinctions align with regulations in countries such as the US, India, and Australia.
Additionally, Unilever Pakistan faced a separate Rs20 million penalty for falsely promoting its frozen desserts as healthier than dairy-based ice creams in violation of the Competition Act.
The CCP bench, comprising Salman Amin and Saeed Ahmed Nawaz, instructed the companies to cease misleading advertisements, clarify product ingredients, and ensure accurate labeling. Non-compliance within 30 days would lead to further penalties.
What’s the difference between Frozen Dessert and Ice Cream?
Many products in the ice cream section of your grocery store are actually frozen desserts, not real ice cream. While they may resemble ice cream, the key difference lies in the ingredients.
Real ice cream is made from 100% dairy – milk, cream, and other milk-derived ingredients like skim milk powder and whey. In contrast, frozen desserts use vegetable oils such as palm, kernel, or coconut oil.
In simple terms, the difference is this: ice cream is made with dairy, while frozen desserts are made with vegetable oils.
Penalty on deceptive Lifebuoy advertisement
Earlier this year, the CCP fined Unilever Rs60 million for deceptive claims in advertisements for ‘Lifebuoy (Care and Protect) Soap’ and ‘Lifebuoy Hand Wash.’
Unilever responded, stating, “Unilever Pakistan is a responsible marketeer and a member of the Pakistan Advertisers Society,” and announced its intention to challenge the decision.
The CCP’s actions underscore its commitment to protecting consumer rights and ensuring truthful marketing practices in Pakistan.