Islamabad, 12 August 2024 (TDI): The Supreme Court on Monday upheld the Competition Appellate Tribunal’s (CAT) decision to impose a fine of Rs6 million on a Lahore-based restaurant chain for fraudulently using “Starbucks” branding to sell its coffee.
STARBUCKS, the largest coffeehouse chain in the world, had lodged a complaint with the Competition Commission of Pakistan (CCP) that a local restaurant chain – Options International – was selling “Starbucks Coffee” using “STARBUCKS MARKS” in its branding.
The CCP inquiry concluded that this could mislead consumers into believing they were purchasing genuine Starbucks products, thereby putting local vendors at a competitive disadvantage.
During the investigation, Options International admitted to the violation. Despite ceasing the use of the Starbucks trademarks and agreeing to comply with CCP’s directives, the company’s unauthorized use of the brand persisted over a significant period. Therefore, the CCP strictly barred Options International from using the STARBUCKS trademark any further while imposing a penalty of Rs5 million.
Moreover, the CCP directed the company to publish notices in newspapers for three consecutive days, informing the public of its fraudulent use of the Starbucks trademarks.
However, Options International moved the Competition Appellate Tribunal (CAT) against the decisions, dismissed the appeal, increased the penalty from Rs5 million to Rs6 million, and modified the daily penalty.
Options International then challenged the CAT’s decision in the Apex Court, seeking relief from the CAT’s decision. The Supreme Court, however, upheld the CAT’s ruling, reiterating the importance of enforcing competition laws to protect consumers and businesses from deceptive marketing practices.
The CCP emphasized that using distorted or misleading information and trademarks in product marketing violates competition laws, influences consumer decisions, and unfairly limits their choices. The Commission remains committed to raising awareness and enforcing strict compliance with competition laws to safeguard the market.
