The Competition Commission of Pakistan (CCP) has imposed fines of Rs. 75 million each on Unilever Pakistan and Friesland Campina Engro. The companies faced penalties for falsely marketing their frozen desserts as “ice cream.”
The CCP acted after receiving a complaint from the manufacturer of Hico. The complaint alleged deceptive advertising by Omore and Walls. Both brands were accused of misleading consumers through TV and social media campaigns.
Hico’s Complaint Sparks Investigation
The case began with Hico’s manufacturer filing a formal complaint. The company claimed Omore and Walls ran campaigns implying their frozen desserts were real ice cream. Hico argued this misrepresentation harmed consumer trust and created unfair competition in the market.
The CCP launched an inquiry to examine the allegations. It found that both brands intentionally blurred the distinction between frozen desserts and ice cream. According to the CCP, frozen desserts use vegetable fat instead of dairy fat, which makes them different from ice cream.
Evidence from Advertising Campaigns
The investigation reviewed TV and digital advertisements by Omore and Walls. The CCP concluded that the ads were designed to confuse consumers. Phrases like “real ice cream taste” and visuals of milk in the campaigns added to the deception.
Officials also found social media posts misleading. The brands used language that created the impression their products were equivalent to ice cream. This, the CCP ruled, was a clear violation of consumer protection laws.
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CCP’s Ruling
After reviewing the evidence, the CCP declared both companies guilty of deceptive marketing practices. The commission emphasized the need for clear labeling and truthful advertising. It also stressed the importance of protecting consumer rights and promoting fair competition.
The CCP ordered Unilever Pakistan, the maker of Walls, and Friesland Campina Engro, the maker of Omore, to pay Rs. 75 million each as penalties. The decision aims to deter other brands from similar practices in the future.
Consumer Impact
This ruling is expected to impact the frozen dessert industry in Pakistan. Many consumers were unaware of the difference between frozen desserts and ice cream. Experts believe the decision will encourage brands to adopt transparent marketing strategies.
Hico welcomed the CCP’s decision, calling it a victory for fair competition. A spokesperson for the company said the ruling protects both consumers and local businesses from deceptive practices.
Next Steps for Omore and Walls
Unilever Pakistan and Friesland Campina Engro have not yet issued public statements on the fines. Legal experts suggest the companies may appeal the CCP’s decision. However, the ruling highlights the growing scrutiny on advertising practices in Pakistan.
The CCP also urged consumers to remain vigilant about product labeling. Officials reminded consumers to check ingredients before purchasing frozen desserts labeled as ice cream.
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