By Staff Reporter
ISLAMABAD: The Supreme Court of Pakistan on Monday upheld a penalty of Rs6 million on a local restaurant chain for deceiving consumers by fraudulently using Starbucks Corp’s branding to sell its coffee.
The court ruling comes after Starbucks, a globally recognized coffee chain, filed a complaint with the Competition Commission of Pakistan (CCP) against Options International, a Lahore-based restaurant chain, for using its branding without permission.
The court ruled that Options International had distorted competition by selling products under the Starbucks name and logo, putting local vendors at a disadvantage.
“The appellant, Options International, put itself forward by selling its products under the international brand name Starbucks and by using its logo, which must have had the effect of distorting competition within Pakistan,” the court said.
The CCP’s enquiry found that Options International had deceived consumers and harmed competitors by disseminating false and misleading information. Options admitted to the violation during the enquiry.
The CCP imposed a penalty of 5 million rupees on Options International and directed the company to inform the public through newspaper advertisements about its fraudulent use of Starbucks branding.
Options International appealed the decision, but the Competition Appellate Tribunal (CAT) dismissed the appeal and increased the penalty to Rs6 million.
The Supreme Court’s decision upholds the CAT’s order, which found that Options International’s unauthorized use of Starbucks branding had spanned a substantial period.
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