Lahore Cafe Fined Rs. 6 Million for Using Starbucks Logo Illegally
The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by M/s Options International (SMC-Pvt.) Limited, a Pakistani company penalized by the Competition Commission of Pakistan (CCP) for the unauthorized use of Starbucks branding in its restaurants.
In its decision, the tribunal increased the penalty from the originally imposed Rs. 5 million to Rs. 6 million.
Starbucks, a globally recognized coffeehouse chain based in Washington, lodged a formal complaint that the Lahore-based restaurant, Options International, was selling “Starbucks Coffee” while fraudulently using Starbucks trademarks in its branding, thereby deceiving consumers and harming its business interests. Starbucks clarified that it had not opened any franchise in Pakistan.
The CCP’s inquiry concluded that Options International had prima facie violated Section 10 of the Competition Act by disseminating false and misleading information, deceiving consumers, and harming the business interests of the complainant. During the inquiry, Options admitted the violation.
During proceedings, the CCP issued an interim order at Starbucks’ request, directing Options International to stop using labeling and packaging bearing the Starbucks trade name and logo without authorization.
In its final order, the CCP’s bench noted that although Options had stopped using Starbucks trademarks and committed to complying with its directions, the unauthorized use spanned a substantial period.
Consequently, the bench imposed a penalty of Rs. 5 million on the company. Additionally, the bench directed Options International to inform the general public through newspaper advertisements for three consecutive days about its fraudulent use of Starbucks trademarks.
Options International filed an appeal against the CCP’s order before the CAT, which dismissed the appeal and increased the penalty amount based on the fact that Options continued using the trademark even after filing a commitment before the CCP. This decision underscores the CCP’s commitment to curbing deceptive marketing practices involving the fraudulent use of trademarks, firm names, or product labeling and packaging of both local and foreign businesses.
