ISLAMABAD: The Competition Commission of Pakistan (CCP) has observed that the companies, which are involved in misleading and unfair trade practices, must be discouraged from selling their products in a deceptive manner, and provide the consumers/customers true and correct information about their product.
According to an enquiry report issued by the CCP, as distribution of false and misleading information and IP infringement attracts the consumers into purchasing goods they might otherwise have not opted for gives the fraudulent undertakings an unfair advantage over the fair competitors and also harms their business.
Thus, in the interest of general public at large, and ordinary consumer in specific, the undertakings, which are involved in misleading and unfair trade practices must be discouraged from selling their products in a deceptive manner, and they should also be directed to adopt such practices, which are transparent and provide the consumers/customers true and correct information about their product, the CCP added.
M/s Hilal Foods (Private) Limited (Complainant), through M/s JUS & REM, filed a complaint against M/s SM Food Makers/Volka Food International (Respondent), with the CCP (the 'Commission') for alleged violation of Section 10 of the Competition Act, 2010 (the 'Act'), pertaining to deceptive marketing practices.
It was alleged in the complaint that the Complainant is engaged in the production of confectionary items, whereas the respondent has been fraudulently involved in parasitic copying of the packaging of the complainant's various famous confectionary items in violation of section 10 of the Act.
In light of the analysis above, the respondent appears to be in, prima facie, violation of Section 10(1) in terms of Section 10 (2) (d) of the Act, which prohibits fraudulent use of another's trademark, product labeling or packaging; where its conduct appears to be infringing upon the rights of the complainant through fraudulent use of complainant's, packaging, colour scheme, design and get up of products, trying to pass off its product as that of the complainant.
The overall conduct of the respondent, i.e., fraudulent use of another's trademark product labeling and packaging, in prima facie violation of Section 10(2)(d) of the Act, is also capable of harming the business interest of the complainant by stealing its rightful customers, negatively affecting its sales and profits, and damaging its good will.
This enquiry report was aimed at examining the allegations of the complainant.
In view of the position stated in the preceding paras, it appears that the respondent is fraudulently using the deceptively similar trademark and trade dress of the complainant.
As a result, the respondent has, prima facie, entered into deceptive marketing practices in terms of the provisions of Section 10 of the Act.
Therefore, in light of the above mentioned findings, it is recommended that the commission may consider initiation of proceedings against the respondent company under Section 30 of the Competition Act.
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