CCP to launch an inquiry against Mezan Beverages for allegedly copying Sting packaging

The Lahore High Court (LHC) has rejected the writ petition filed by M/s Mezan Beverages Pvt. Ltd challenging a show-cause notice issued by the Competition Commission of Pakistan (CCP) over alleged deceptive marketing practices.

The CCP initiated an inquiry under section 37(2) of the Act following a complaint from Pepsi Co Inc., alleging that Mezan had copied the packaging of Pepsi’s energy drink ‘Sting’ for its own product, ‘Storm’. After completing the inquiry, the CCP recommended issuing a show-cause notice to Mezan Beverages.

In response, Mezan filed a writ petition against the CCP’s inquiry process and the show-cause notice. Initially, in August 2021, the Lahore High Court had suspended the show-cause notice, halting proceedings before the CCP.

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However, after extensive hearings, the LHC affirmed the statutory powers of the CCP as upheld by the Supreme Court of Pakistan in its judgment in ‘CCP v. Dalda Foods Ltd’. The court clarified that the CCP has the authority to initiate inquiries and gather information under the Act.

Regarding the jurisdiction issue vis-à-vis the Tribunal under the Intellectual Property Organization of Pakistan Act, 2012 (IPO Act), the LHC emphasized that both the Act and the IPO Act serve distinct purposes. The Act focuses on competition law, including addressing deceptive marketing practices under section 10, which falls within CCP’s jurisdiction. The IPO Act, on the other hand, deals with intellectual property laws and operates under a separate regulatory framework.

Consequently, the LHC affirmed that deceptive marketing practices are integral to competition law, and thus within the domain of the CCP as defined by the Act.