CAT slashes fines on Unilever, Friesland for misleading ice cream ads

January 14, 2026 (MLN): The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) finding that Unilever Pakistan and Friesland Campina Engro misled consumers by marketing frozen desserts as ice cream, while reducing the financial penalties imposed on the companies.

The CAT cut the fines from Rs75m to Rs15m for each company. In addition, Unilever Pakistan’s penalty for claiming its frozen dessert was healthier than dairy ice cream was reduced from Rs20m to Rs5m.

The tribunal emphasized that the reduction in penalties does not condone the violation but reflects a proportional exercise of appellate discretion considering mitigating circumstances.

The CCP had initiated proceedings following a complaint by Pakistan Fruit Juice Company Private Limited, the maker of Hico ice cream, according to the press release.

The complaint alleged that Unilever and Friesland Campina Engro engaged in deceptive advertising by presenting frozen desserts as ice cream in television and social media campaigns.

During its inquiry, the CCP issued show cause notices to both companies, which market frozen desserts under the brand names Walls and Omore.

The Commission relied on standards set by the Pakistan Standards and Quality Control Authority and the Punjab Pure Food Regulations 2018, which differentiate ice cream from frozen desserts.

Ice cream is defined as a product made from milk, cream, or other dairy ingredients, whereas frozen desserts can include pasteurized mixes containing milk products and edible vegetable oils.

The CCP had directed the companies to stop advertising frozen desserts as ice cream which prohibits false and misleading information that can affect consumer choice.

The case has implications for Pakistan’s consumer protection framework and the frozen dessert market, signaling stricter regulatory scrutiny on product labeling and advertising practices in the food industry.

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