Key Points
- Pakistan’s Competition Commission fines a beverage company Rs 150 million for imitating PepsiCo’s Sting energy drink
- The case highlights years of litigation and regulatory delays since 2018
- Commission clarifies that registered trademarks do not exempt companies from competition law concerning consumer deception
ISLAMABAD: Pakistan’s competition regulator has imposed a fine of 150 million rupees on a local beverage company for deceptive marketing practices, ruling that its energy drink closely resembled a rival product in a way that could mislead consumers at the point of sale, officials said on Friday.
According to a statement, the regulator Competition Commission of Pakistan (CCP), fined Mezan Beverage, a local company, after PepsiCo filed a complaint of deceptive marketing.
CCP said it has fined the beverage company for engaging in deceptive marketing practices. Mezan Beverages (Private) Limited was found to have closely copied the packaging and branding of PepsiCo’s Sting energy drink, misleading consumers at the point of sale.
The Commission found that Mezan’s “Storm” energy drink mimicked the overall appearance, colour scheme, bottle design, and branding elements of Sting, creating a likelihood of consumer confusion. The act was deemed parasitic copying and a violation of Section 10 of the Competition Act, 2010.
The dispute dates back to 2018 when PepsiCo filed a complaint alleging imitation and exploitation of its brand goodwill. Mezan repeatedly challenged CCP jurisdiction and obtained stay orders from the Lahore High Court, delaying proceedings until June 2024, when the Court ultimately upheld CCP’s authority.
The CCP’s detailed review noted that Storm’s design included a red-dominant colour scheme identical to Sting, bold slanted white lettering with aggressive motifs, a similar bottle shape, and other elements likely to mislead consumers.
The Commission emphasised that consumer deception is assessed based on overall commercial impression rather than side-by-side comparison. The ruling clarified that holding a registered trademark does not shield a company from competition law violations where deceptive marketing is established.
By levying the Rs150 million fine, the CCP signalled that misleading packaging and copycat branding will not be tolerated, regardless of the company’s size or its position in the domestic market.
