The Competition Commission of Pakistan (CCP) has issued show cause notices to nine fabric and packaging companies for deceptively using the registered trademark of ShajarPak (Pvt) Limited, a fabric manufacturer.
ShajarPak complained to the CCP that five fabric manufacturers and three packaging manufacturers are using its registered trademark. These companies are:
- Ahmad Pasha Collection
- Aamir Cloth House
- M. Ramazan Fabrics
- Pasha the Designer Fabrics
- Sufi Cloth House
- Baba Plastic
- Ahmad Plastic
- Dabba House
- Kausar Brothers Plastic Corner
They were falsely using its registered trademark ‘Pasha Fabrics’ on the packaging and labeling of their products.
ShajarPak further said that the unauthorized use of its trademark by these companies was harming its business interest and goodwill.
CCP’s enquiry found that ShajarPak had not authorized any of the above companies to use its trademark. By copying ShajarPak’s trademark and trade dress, the companies were deceiving consumers and harming the business interest of ShajarPak, a violation of Section 10 of the Competition Act, 2010.
Consequently, on the inquiry report’s recommendation, the CCP issued showcause notices to the nine companies for prima facie violation of Section 10 and set a date for hearing the case.
Deceptive marketing practices have a direct impact on consumers and the public at large. It is in the interest of the public that companies refrain from advertising their products/services in an unfair and misleading manner and adopt advertising practices that are transparent and communicate the correct information to consumers.
CCP is mandated under the Competition Act to ensure healthy competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive practices.