The Competition Commission of Pakistan (CCP) has levied a combined fine of Rs170 million on the producers and distributors of Walls and Omore for misleading consumers by marketing their “frozen desserts” as “ice cream.”
The two frozen dessert producers, M/s Unilever Pakistan and M/s FrieslandCampina Engro, were each fined Rs75 million by the Commission.
In addition, M/s Unilever Pakistan was fined Rs20 million for violating Section 10(2)(c) of the Competition Act by conducting and promoting false comparisons of their products as healthier than dairy ice cream in their advertisements, the CCP said in a statement.
According to the Commission, it started the investigation on a complaint made by M/s Pakistan Fruit Juice Company (Private) Limited, which claimed that two businesses were using social media and television commercials to deceptively sell their frozen desserts as ice cream.
Both companies have been ordered to remove misleading advertisements from digital platforms and ensure proper product disclosures. They must submit a compliance report to the CCP within 30 days.
Additionally, the CCP directed the companies to cease misrepresenting frozen desserts as ice cream in their advertisements, which is against Section 10 of the Competition Act since it deceives customers.
Previously, the Commission sent show-cause notifications to the producers and distributors of the frozen desserts “Walls” and “Omore” after starting an investigation.
Salman Amin and Saeed Ahmed Nawaz led the CCP panel, which levied fines and cited Pakistan’s PSQCA PS 969-2010 and Punjab Pure Food Regulations 2018, which make a distinction between frozen sweets and ice cream. While frozen sweets include milk, milk products, and edible vegetable oils, ice cream is dairy-based.
The order also referenced global standards from the USA, Australia, and India, where only dairy-based products can be labeled as ice cream. The US FDA had previously penalized a company for misbranding frozen desserts as ice cream.
Earlier this year, the CCP fined Unilever Pakistan Rs60 million for airing misleading claims in TV ads for its ‘Lifebuoy (Care and Protect) Soap’ and ‘Lifebuoy Hand Wash.’ Unilever Pakistan stated that it would challenge the order, emphasizing its commitment as a responsible marketeer and a member of the Pakistan Advertisers Society.
