KEY POINTS
- Pakistan’s competition tribunal upholds findings against Unilever Pakistan and FrieslandCampina Engro
- Companies marketed frozen desserts as ice cream in television and digital advertising
- Regulators cite food safety and labelling standards distinguishing ice cream from frozen desserts
- Firms ordered to halt misleading advertisements
- Financial penalties reduced but violations upheld
ISLAMABAD: Pakistan’s Competition Appellate Tribunal has upheld a landmark ruling by the country’s competition regulator against Unilever Pakistan and FrieslandCampina Engro, concluding that the companies misled consumers by advertising frozen desserts as ice cream.
According to the Tribunal, the multinational companies violated national competition and consumer protection laws.
The case arose from a complaint filed by Pakistan Fruit Juice Company Private Limited, the manufacturer of Hico ice cream, which accused the two companies of deceptive marketing practices across television and social media platforms.
The Competition Commission of Pakistan (CCP) initiated a formal inquiry and examined whether the advertising misrepresented the nature of the products sold under the Walls and Omore brands.
Following its investigation, the CCP determined that the advertisements created the impression that frozen dessert products were ice cream, despite clear regulatory distinctions between the two categories.
The Commission relied on standards issued by the Pakistan Standards and Quality Control Authority and the Punjab Pure Food Regulations 2018, which define ice cream as a product made from milk, cream, or other dairy ingredients.
Under these standards, frozen desserts are classified separately, as they may be produced from a pasteurised mix that includes milk products alongside edible vegetable oils.
The CCP held that presenting frozen desserts as ice cream amounted to false and misleading information for consumers, in violation of Section 10 of Pakistan’s Competition Act, which governs deceptive-marketing practices.
As part of its enforcement action, the CCP directed both companies to immediately stop representing frozen desserts as ice cream in their advertising. It imposed penalties of Rs 75 million on each firm.
Unilever Pakistan was also fined an additional Rs 20 million for running advertisements that compared its frozen dessert products with dairy ice cream by portraying them as healthier alternatives.
On appeal, the Competition Appellate Tribunal upheld the CCP’s findings on liability but reduced the financial penalties.
The tribunal cut the fine on each company to Rs 15 million and reduced the additional penalty imposed on Unilever Pakistan to Rs 5 million.
In its judgment, the tribunal stressed that the reduction in penalties should not be interpreted as approval of the conduct.
It said the adjustment reflected a measured exercise of appellate discretion, guided by proportionality and the presence of mitigating circumstances.
The ruling underscores Pakistan’s efforts to align food advertising and labelling practices with regulatory standards, a move closely watched by multinational consumer goods companies operating in emerging markets where regulatory scrutiny and consumer awareness are increasing.
