Heavy Fines Imposed on Unilever Pakistan and Friesland Campina Engro for Misleading Ice Cream Marketing

The Competition Commission of Pakistan (CCP) has imposed fines of PKR 95 million on Unilever Pakistan and PKR 75 million on Friesland Campina Engro for falsely marketing frozen desserts as ice cream.

The investigation found that neither company uses dairy-based cream in their products, a key ingredient required for ice cream classification. Instead, vegetable oils and animal fats are used, making their products “frozen desserts.” Selling these under the label of ice cream was deemed deceptive and non-compliant with food standards report by international media.

Key Findings

• Deceptive Labeling: The companies marketed frozen desserts as ice cream, misleading consumers.
• Ingredient Disclosure: Products lacked proper labeling of ingredients.
• Unfair Competition: A complaint from Hico Ice Cream highlighted the misuse of advertising to create unfair market advantages.

Commission’s Orders

• Transparency: Both companies must explicitly state their products are frozen desserts.
• Packaging Revisions: Ingredients must be clearly listed.
• Ad Campaign Halt: Ongoing advertisements promoting frozen desserts as ice cream must cease immediately.

The CCP cited regulations from countries like the US, Australia, and India, where only dairy-based products are allowed to be labeled as ice cream. The ruling aims to protect consumers from misleading claims and set stricter industry standards.