Background of the case:

M/s DHL Pakistan (Pvt.) Limited filed seven formal complaints before the CCP alleging that Mr. Uzair Zain-ul-Abidin (Uzair), Mr. Asif Iqbal (Asif), Mr. Waqqas Ahmad Malik (Waqqas), Mr. Nauman Anwar Butt (Butt), Mr. Rehan Sheikh (Rehan), Mr. Malik M. Pervaiz (Pervaiz) of ACCS International World Wide Express and Raja Asir Munir (Asir) (respondents) are fraudulently using its stylized and artistically created logo/trademark without its or its principal’s permission/authorization/consent thus violating Section 10 of the Competition Act.

An enquiry conducted by CCP revealed that there appeared to have been no authorization given by DHL to the abovementioned respondents to use its trademark, thus its use by them for advertisement/marketing purposes, prima facie, was fraudulent which amount to deceptive marketing practices in terms of subsection Section 10 of the Competition Act.

The enquiry report observed that deceptive marketing practices have a direct impact on consumers and the public at large. It is in the interest of the general public that the Undertakings should be stopped from advertising their products/services in an unfair and misleading manner and be encouraged to resort to the advertising practices which are transparent and gives consumers/customers true and correct information.

The Order:

The CCP bench after hearing the parties observed that part of any business’s identity was the goodwill it had established with consumers, while part of a product’s identity was the reputation it had earned for quality and value. In a larger sense, trademarks promoted initiative and enterprise worldwide by rewarding the owners of trademarks with recognition and financial profit. Trademark protection also hindered the efforts of unfair competitors, such as counterfeiters, to use similar distinctive signs to market inferior or different products or services. This enabled people with skill and enterprise to produce and market goods and services in fair conditions, thereby facilitating international trade.

After hearing the parties the bench imposed the following penalties on five local courier service providers: Rs. 5,00,000/- on Mr. Uzair; Rs. 1,000,000/- on Mr. Asif Iqbal; Rs. 1,000,000/- on Mr. Malik M. Pervaiz; Rs. 1,000,000/- on Mr. Nauman Anwer Butt; and Rs. 1,000,000/- on Raja Asir Munir. Two respondents, Mr. Rehan and ICS Courier, were forthcoming and discontinued using the DHL trademark during the proceedings, therefore, the Commission while taking a lenient view did not impose penalty on them.

Current Status:

The Respondents have filed appeal before the Competition Appellate Tribunal. The matter is pending adjudication before the Tribunal.