Background of the Case

CCP received a formal complaint from STARBUCKS, an international chain of coffeehouses registered in the State of Washington, alleging that Options Coffee and More, that a Lahore-based restaurant, was fraudulently using its official trademark, “STARBUCKS Coffee,” deceiving consumers and harming its business interest. STARBUCKS said that it had not opened any franchise in Pakistan.

The Enquiry report concluded that Options International had, prima facie, violated Section 10 of the Competition Act by disseminating false and misleading information for the purpose of deceiving consumers and harming the business interest of the complainant.

Although Options was selling ‘STARBUCKS coffee’, it admitted that it was not an authorized franchisee of STARBUCKS International. In the absence of any contractual arrangement with STARBUCKS, it had no legitimacy to sell STARBUCKS coffee or make the claims to that effect.

On recommendations of the Enquiry report, a Show Cause Notice was served on Options International and the company was directed to respond in writing within fourteen days.

Interim-Order:

CCP passed an Interim-Order directing Options to refrain from marketing, advertising, producing and supplying coffee and other related product’s labelling and packaging bearing Starbuck’s trade and logo anywhere without any authorization from the Complainant.

It was further directed that Options should make sure it does not imply any affiliation or association with Starbucks and to ensure that logos and trademarks being used by Options are not copied from Starbucks.

Any violation of the aforesaid directions would make the Respondent liablet to a fine of Rs. 10 Million, and the Respondent was directed to file a compliance report within seven days from the date of the order.