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Monday, February 3, 2025

Multimillion-Rupee Fines on 2 Ice Cream Giants for Deceptive Marketing!

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Competition Commission of Pakistan instructed Unilever and Friesland Campina Engro to halt their current advertising campaigns to prevent consumers from purchasing “frozen desserts” marketed as ice cream.

The Competition Commission of Pakistan (CCP) has taken action against companies selling food items under the name of ice cream, imposing hefty fines for misleading marketing practices. The decision came after it was found that these products did not meet the required standards and claims.

The CCP has imposed a heavy fine on companies selling food items under the name of ice cream. The action was taken after finding that the food production of both companies did not meet the required standards and claims.

In the order issued by the CCP, it was stated that the products being sold under the name of ice cream were misleading, as these companies did not include milk-based cream in their ice creams. It is a requirement for any food item to be called ice cream only if it contains milk.

According to the CCP, these companies were selling “frozen desserts” under the name of ice cream, which is deemed illegal and deceptive.

The investigation revealed that, instead of using milk-based cream, these companies used vegetable oil and animal fat. These two companies have been fined 95 million and 75 million rupees, respectively.

The CCP directed Unilever Pakistan and FrieslandCampina Engro to ensure that they list the ingredients in their products and provide a disclaimer stating that they do not make ice cream.

The complaint against these companies was filed by a fruit juice company, which makes ice cream under the name “Hiko.”

The CCP’s order mentioned that these companies were selling “frozen desserts” as ice cream, misleading the public into thinking that frozen dessert is the same as ice cream, with their marketing campaigns pushing this confusion.

The CCP stated that both companies were gaining economic benefit from their deceptive marketing.

The order also referenced the Pakistan Standards and Quality Control Authority and the Punjab Pure Food Regulation of 2018, which specify that frozen dessert is not considered ice cream.

Additionally, the CCP noted that in countries like the U.S., Australia, and India, companies can only label ice cream products made solely from milk.

The Commission instructed Unilever and FrieslandCampina Engro to halt their current advertising campaigns to prevent consumers from purchasing “frozen desserts” marketed as ice cream.

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