Rs5M fine on ‘Options’ for using Starbucks logo

Khudayar Mohla
Declaring unauthorized use of international coffee chain STARBUCKS’ official logo fraudulent on Monday the Competition Commission of Pakistan (CCP) imposed penalty of five million rupees on a Lahore based café ‘Options’.
Upon using STARBUCKS logo fraudulently for a substantial period of time, the international coffee chain had filed complaint before the CCP for remedy against Options International Limited, running the business on the title of ‘Options’.
Starbucks Corporation is registered in the State of Washington, the United States of America, and runs an international network of coffeehouses by its authorized operators, licensees, and franchisees operating in more than 66 countries uniformly using the STARBUCK MARKS.
While announcing its final order in the matter, the CCP noted, “although ‘Options’ has stopped using STARBUCK MARKS and also filed commitment to comply with its directions, however, since the unauthorized use of STARBUCKS MARKS spanned over a substantial period of time, the bench imposed a penalty of five million rupees on the company”.
Besides, the CCP bench also issued directives to the ‘Options’ to inform the general public through newspaper advertisements for three consecutive days from the date of the order about its fraudulent use of the STARBUCKS MARKS”.
CCP said in a statement that Starbucks sent a formal complaint to the Commission that ‘Options’ was engaged in the marketing, advertising, selling, and offering to sell “Starbuck coffee” using the STARBUCKS MARKS on the sign board of its coffee houses and restaurants, including on the packaging material, menus, flyers, its Facebook page, and other promotional material, without any authorization. The practice was not only harming the business interest of Starbucks, but also deceiving the consumers.
The CCP’s enquiry established that Options has violated Section 10 of the Competition Act by fraudulently using the official trademark of STARBUCKS. On the enquiry’s recommendations, Show Cause Notice was issued and hearings were held.
During the proceedings, CCP received another application from STARBUCKS seeking an Interim Order in the case to prevent further damage to its business and goodwill until the Commission concludes its proceedings. On 17 August 2018, the CCP passed an interim order directing Options International to immediately stop using “STARBUCKS” logo in its products until the conclusion of the proceedings and issuance of the final order.
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 practices.