ISLAMABAD (Kashmir English): The Competition Commission of Pakistan (CCP) on Friday imposed a fine of Rs150 million on Mezan Beverages (Pvt) Ltd for copying the packaging and trade dress of PepsiCo’s energy drink “Sting”.
According to the Commission, Mezan’s energy drink ‘Storm’ mimicked Sting’s overall design, colour combination, bottle shape, and branding, creating a clear likelihood of consumer confusion.
The CCP categorised the act as parasitic copying, violating Section 10 of the Pakistan Competition Act 2010.
Section 10 of the Pakistan Competition Act 2010 prohibits undertakings from engaging in “deceptive marketing practices.”
The Act defines deceptive practices as the distribution of “false or misleading information that is capable of harming the business interests of others”; the distribution of false or misleading information to consumers; “false or misleading comparison of goods in the process of advertising”; or the “fraudulent use of another’s trademark, firm name, or product labelling or packaging.”
PepsiCo’s complaint
The case had been pending since 2018. PepsiCo Inc. had lodged a complaint claiming that Mezan Beverages designed ‘Storm’ to closely resemble ‘Sting’ and illegitimately benefit from PepsiCo’s brand reputation.
Instead of addressing the concerns, Mezan challenged the CCP’s authority in court, obtaining interim injunctions that repeatedly delayed the inquiry for several years.
Last year, the Lahore High Court rejected Mezan Beverages’ petition, upholding the CCP’s authority to conduct the inquiry. The court noted that Mezan used legal injunctions to stall the Commission’s proceedings and directed CCP to complete its inquiry and issue a decision.
The Competition Commission’s detailed ruling noted that Storm’s red color scheme, bold slanted white lettering, and bottle shape closely resembled Sting further stating that these branding elements could mislead ordinary consumers.
The Commission emphasised that having a registered trademark for ‘Storm’ does not exempt a company from competition law if it misleads consumers.
