The Competition Commission of Pakistan (CCP) has imposed Rs 2.7 million penalty on nine companies for deceiving consumers by fraudulently using the trademark of another company.
Bahawalpur-based Al-Rehman Oil Mills complained to the CCP against the companies namely Niaz Corporation, Hamza Corporation, Muslim Corporation, Mian Traders, Bahawalpur Oil Mills, Riaz Oil Mills, Baloch Oil Mills, Azhar Kiryana Store, and Waqas Oil Mills for fraudulently using its registered trademark, ‘Taizgaam,’ with slight modifications in their marketing material.
This practice by the companies was harming its business interest and its hard-earned goodwill among consumers, the complainant said, according to a CCP press release issued here Wednesday.
The CCP’s enquiry found that the nine companies were infringing the trademark and imitating the trade dress (packaging size, colour combinations, logo design, label design, text, font type, size etc.) of Al-Rehman’s Taizgaam, resorting to copycat packaging or parasitic copying, which is a violation of Section 10 of the Competition Act, 2010. Show cause notices were issued to them on the recommendation of the enquiry report.
During the hearings, majority of the companies expressed their willingness to comply with the CCP’s directions. The CCP’s bench imposed a penalty of Rs 300,000 on each of the nine companies and directed them to stop using “Taizgaam” with their products.
The CCP’s order said that parasitic copying of the packaging and labelling of Al-Rehman Oil Mills products was misleading, deceptive, and could harm its business interests. Such conduct was intended to take advantage of the goodwill attached to the complainant’s trademark.
The companies were also directed to file individual compliance reports with the CCP within 30 days.