CCP issues show-cause notice to Fabric Companies for deceptive Marketing practices

The Competition Commission of Pakistan (CCP) has issued show cause notices to eight fabric and packaging companies for deceptively using the registered trademark of ShajarPak (Pvt.) Limited, a fabric manufacturer.

ShajarPak complained to CCP that five fabric manufacturers including Ahmad Pasha Collection, Aamir Cloth House, M. Ramazan Fabrics, Pasha the Designer Fabrics, Sufi Cloth House, and three packaging manufacturers - Baba Plastic, Ahmad Plastic & Dabba House, and Kausar Brothers Plastic Corner - were falsely using its registered trademark ‘Pasha Fabrics’ on the packaging and labelling 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 enquiry report’s recommendation, the CCP issued of show cause notices to the eight 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 a healthy competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive practices.