(CCP) Enforces Order Against Frozen Dessert Manufacturers
The (CCP) has successfully enforced its order against two manufacturers of frozen desserts for misleading consumers by advertising their products as “ice cream.” The case was initiated after a complaint filed by M/s Pakistan Fruit Juice Company, alleging deceptive marketing practices.
Following a formal enquiry under the Competition Act, 2010, the Commission concluded that the undertakings had disseminated false and misleading information to consumers in violation of Section 10 of the Act. The Commission imposed penalties totaling PKR 35 million on the two companies.
The Commission relied on standards issued by the Pakistan Standards and Quality Control Authority (PSQCA) and the Punjab Pure Food Regulations 2018, which clearly distinguish between “ice cream” and “frozen desserts.” While ice cream is made from milk, cream, or other dairy ingredients, frozen desserts may include edible vegetable oils and are classified as a separate product category.
The Commission directed the undertakings to cease presenting frozen desserts as ice cream, remove all misleading advertisements across platforms, and make adequate disclosures regarding their products. The companies were also required to submit compliance reports within the prescribed timeframe.
The Competition Appellate Tribunal upheld the Commission’s findings, affirming that the conduct constituted deceptive marketing under the law.