The Competition Commission of Pakistan (CCP) has observed that the fraudulent use of another's trademark, firm name, or product labelling or packaging is capable of harming the business interests of whole business community.
The CCP has made these observations in the inquiry report issued in the matter of a complaint filed by a company engaged in developing, and promoting water tanks against a trading corporation (the 'Respondent') for alleged violation of Section 10 of the Competition Act, 2010 (the 'Act'), ie, Deceptive Marketing Practices.
The CCP stated that 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 inferior 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 products.
Therefore, in light of the above mentioned findings, it is recommended that the Commission may consider initiating proceedings against sole proprietor of Trading Corporation under Section 30 of the Act.
It was alleged in the complaint that the trading corporation was involved in unauthorized use of a modified version of the Complainant's registered trademark/trade name and logo "Super Tuff" for branding of its products, water tanks, with similar style and design.
It was further alleged that such conduct of the Respondent was capable of harming the business interest and goodwill of the Complainant, which amounts to, prima facie, violation of Section 10 of the Act, which prohibits deceptive marketing practices.
Finally, the overall conduct of the Respondent, ie, distribution of information lacking a reasonable basis related to character, method of production, properties, quality and suitability for use of its water tanks in prima facie violation of Section 10(2)(b) of the Act and fraudulent use of another's trademark, firm name, or product labelling or packaging in prima facie violation of Section 10(2)(b) of the Act, is capable of harming the business interests of the Complainant by stealing its rightful customers, negatively affecting its sales and profits, and damaging its good will.
Resultantly, as the Respondent's conduct is capable of harming the business interest of the Complainant, the Respondent appears to be in prima facie violation of Section 10(2)(a) of the Act, the CCP added.