KARACHI: The Competition Commission of Pakistan (CCP) said it has enforced an order against two manufacturers of frozen desserts for misleading consumers by marketing their products as ‘ice cream’, recovering Rs35 million in penalties.
The competition regulator initiated the case following a complaint alleging deceptive marketing through television and social media advertisements. After an enquiry under the Competition Act, 2010, the regulator found that the companies had disseminated false and misleading information in violation of Section 10 of the law. It had originally imposed penalties of Rs75 million each on the two firms, along with an additional Rs20 million on one company for making false comparative claims that its frozen dessert was healthier than dairy-based ice cream.
In its ruling, the CCP cited standards set by the Pakistan Standards and Quality Control Authority and the Punjab Pure Food Regulations 2018, which distinguish between ‘ice cream’ and ‘frozen desserts’. Ice cream is made from milk, cream or other dairy ingredients, while frozen desserts may include edible vegetable oils and are classified separately.
The regulator had directed the companies to stop presenting frozen desserts as ice cream, withdraw misleading advertisements and make adequate product disclosures, along with submitting compliance reports within a prescribed timeframe.The Competition Appellate Tribunal upheld the findings, affirming that the conduct amounted to deceptive marketing under the law.
