Walls and Omore Fined Rs170m for Misleading Ice Cream Ads
- Fahad Bin Khalid
- December 23, 2024
- 4:41 pm
- 41
- Current Affairs
Misleading Frozen Dessert Ads Cost Walls and Omore Rs170 Million
The Competition Commission of Pakistan (CCP) imposed a hefty Rs170 million fine on Walls and Omore for misleading frozen dessert ads. The manufacturers misrepresented their frozen desserts as ice cream, violating consumer trust and food labeling standards.
The Issue with Misleading Ads
Walls, produced by Unilever Pakistan, and Omore, manufactured by Friesland Campina Engro, claimed their frozen desserts were ice cream. According to Pakistan Standards and Quality Control Authority (PSQCA) standards, ice cream must be made from dairy products like milk and cream, while frozen desserts contain vegetable oils. This misrepresentation caused confusion among consumers who were led to believe they were purchasing traditional ice cream.
Complaint and Investigation
The CCP's action stemmed from a complaint filed by Pakistan Fruit Juice Company, the makers of Hico ice cream. The company alleged that Walls and Omore misled consumers through widespread advertising campaigns on television and social media.
During its inquiry, the CCP referred to PSQCA standards and confirmed that the products marketed as ice cream by Walls and Omore failed to meet regulatory requirements. The investigation revealed a deliberate attempt to market frozen desserts under a false label, violating Section 10(2)(c) of the Competition Act.
Penalties and Compliance Orders
As a result of the investigation, the CCP fined Unilever Pakistan Rs20 million for false advertising about the nutritional value of frozen desserts, promoting them as healthier than traditional dairy-based ice cream.
The companies were ordered to stop using the term “ice cream” in their advertisements and product labeling. They must also remove misleading ads from all media platforms and provide clear disclosures about their product ingredients. To ensure compliance, both companies are required to submit a compliance report to the CCP within 30 days.
Global Precedents on Misleading Frozen Dessert Ads
The CCP cited similar cases from the USA, Australia, and India, where regulatory bodies penalized companies for misbranding frozen desserts as ice cream. For example, the United States Food and Drug Administration (FDA) has prosecuted companies for false advertising in similar instances.
Consumer Protection at the Forefront
The CCP's decision aims to protect consumers by ensuring transparency in food labeling. Misleading frozen dessert ads erode consumer trust and distort the market, making it difficult for buyers to make informed choices. This penalty serves as a warning to companies engaging in deceptive practices and emphasizes the importance of adhering to food labeling standards.
Conclusion
Walls and Omore's misleading frozen dessert ads led to a Rs170 million penalty, underscoring the importance of truthful advertising and compliance with food labeling regulations. The CCP's decision reinforces its commitment to protecting consumer rights and maintaining fair competition in the market.
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