CCP decides to Initiate inquiry against Mezan Beverages for copying Sting packaging

LAHORE: The Lahore High Court (LHC) dismissed the writ petition filed by M/s Mezan Beverages Private Limited. Ltd. against the show-cause notice issued by the Competition Commission of Pakistan (CCP) on alleged deceptive marketing practices.

As per the details, under Section 37(2) of the Act, the CCP initiated an inquiry after receiving a complaint from the Pepsi Company. The complaint stated that Mezan was copying the overall packaging of Pepsi’s energy drink ‘Sting’ for its own energy drink ‘Storm’. After the completion of the inquiry report, it was recommended to issue a show cause notice to Mezan Beverages.

Mezan immediately responded with legal moves, filing a writ petition against the CCP’s inquiry process and issuing a show cause notice. In August 2021, the Lahore High Court in its order stayed the show cause notice, hence the proceedings before the CCP.

However, after hearing the parties at length, the LHC held that the Supreme Court of Pakistan in its judgment in ‘CCP v. Dalda Foods Ltd. maintained. Information.

It is pertinent to mention here that on the issue of jurisdiction of CCP vis-à-vis the Tribunal constituted under the Intellectual Property Organization of Pakistan Act 2012 (IPO Act) it has been decided that both the Act i.e. the Act and the IPO Act. Clearly distinct in purpose, scope and mandate. The Act deals with competition law, while the IPO Act deals with intellectual property laws.

Each enactment has created a specialized regulatory body and established a self-contained regulatory framework for administering the duties and responsibilities imposed by law. The IPO Act consciously excludes the Act from its schedule and thus the legislature has deliberately excluded the Act from the purview of the IPO Act.

Therefore, ‘deceptive marketing practices’ under Section 10 of the Act are a necessary and integral element of competition law, the jurisdiction of which lies with the CCP under the Act.