CCP imposes penalty on Shainal Foods for deceptive marketing practices

The Competition Commission of Pakistan (CCP) has imposed a penalty of PKR 5 million on Shainal Al-Syed Foods Limited for violating Section 10 of the Competition Act, 2010.

National Foods Limited complained to the CCP that Shainal Foods was copying its trademark and logo in packing, marketing, and selling its food products. Moreover, the colour scheme and design of the Shainal Foods’ products was starkly similar to that of the National Foods’ products, which was misleading the consumers.

The CCP’s enquiry established that Shainal Foods was imitating the logo, packaging, colour scheme and design of National Food’s products, thus potentially harming its business interest as well as misleading the consumers.

The CCP’s order noted that though Shainal Foods was given substantial time to amend its branding to address the competition concerns, however, no serious effort was made by the company in this regard.. The CCP imposed a penalty of PKR 5 million on Shainal Foods and directed the company to repackage its products to distinguish them from the products of National Foods.

CCP is mandated under the Competition Act to ensure free competition in all spheres of commercial and economic activity, to enhance economic efficiency and to protect consumers from anti-competitive practices including deceptive marketing.