The Competition Commission of Pakistan (CCP) has enforced penalties against two major food companies, Magnum and Omore, for misleading consumers by marketing frozen desserts as ice cream.
The regulator said it had recovered Rs35 million after action against Unilever Pakistan and FrieslandCampina Engro.
Complaint led to inquiry
The case began after a complaint by Pakistan Fruit Juice Company, which produces Hico ice cream.
The company alleged that competing brands, including Magnum and Omore, were advertised as ice cream on television and social media.
Following an inquiry under the Competition Act 2010, the CCP found that the advertisements were misleading and did not clearly distinguish between the two products.
Difference between products
The Commission referred to standards set by the Pakistan Standards and Quality Control Authority and the Punjab Pure Food Regulations 2018.
These rules define ice cream as a product made from milk or cream, while frozen desserts may use vegetable oils instead of dairy ingredients.
Penalties and orders
Initially, both companies were fined Rs75 million each. Unilever Pakistan was given an additional Rs20 million penalty for claiming its product was healthier than traditional ice cream.
The CCP ordered the companies to stop marketing frozen desserts as ice cream and to remove misleading advertisements.
They were also directed to provide accurate product information and submit compliance reports.
Tribunal upholds decision
The Competition Appellate Tribunal later upheld the Commission’s decision, supporting its role in regulating fair competition and protecting consumers.
Officials say the case highlights the importance of clear labelling so that buyers can make informed choices about the products they purchase.
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