The Competition Commission of Pakistan (CCP) has imposed a total penalty of Rs. 4.5 Million on five local courier service providers for violating section 10 of the Competition Act, 2010 that deals with deceptive marketing practices. A CCP Bench comprising of Chairperson Ms. Rahat Kaunain Hassan and Members Mr. Mueen Batlay and Dr. Shehzad Ansar, passed an order in a complaint filed by DHL Pakistan (Pvt.) Limited and after hearing the parties, 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. DHL Pakistan (Pvt.) Limited had lodged a complaint with CCP that seven courier providers were using its trademark without authorization, which is misleading and false and in violation of the Section 10 of the Competition Act, 2010 (Competition Act). An enquiry conducted by CCP established that the trademark of DHL was fraudulently being used by the accused courier service providers and recommended further action against them. The CCP Bench after hearing the parties at length and analyzing the documents placed on the record concluded that the alleged conduct of the Respondents was aimed at capitalizing on the goodwill attached to DHL trademark. The CCP bench 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. The CCP bench reprimanded the respondents to ensure responsible behavior in future with respect to the marketing of their business and directed them to discontinue the use of trademark of DHL with immediate effect. They were further directed to file the commitments with the Registrar of the Commission reporting compliance with the Order within 15 days, failing which they shall be made further liable under Section 38 of the Competition Act to pay an additional penalty amounting to Rs. 500,000/- per day from the date of such violation.
The Competition Commission of Pakistan (CCP) has imposed a total penalty of Rs. 4.5 Million on five local courier service providers for violating section 10 of the Competition Act, 2010 that deals with deceptive marketing practices. A CCP Bench comprising of Chairperson Ms. Rahat Kaunain Hassan and Members Mr. Mueen Batlay and Dr. Shehzad Ansar, passed an order in a complaint filed by DHL Pakistan (Pvt.) Limited and after hearing the parties, 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.
DHL Pakistan (Pvt.) Limited had lodged a complaint with CCP that seven courier providers were using its trademark without authorization, which is misleading and false and in violation of the Section 10 of the Competition Act, 2010 (Competition Act). An enquiry conducted by CCP established that the trademark of DHL was fraudulently being used by the accused courier service providers and recommended further action against them. The CCP Bench after hearing the parties at length and analyzing the documents placed on the record concluded that the alleged conduct of the Respondents was aimed at capitalizing on the goodwill attached to DHL trademark.
The CCP bench 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.
The CCP bench reprimanded the respondents to ensure responsible behavior in future with respect to the marketing of their business and directed them to discontinue the use of trademark of DHL with immediate effect. They were further directed to file the commitments with the Registrar of the Commission reporting compliance with the Order within 15 days, failing which they shall be made further liable under Section 38 of the Competition Act to pay an additional penalty amounting to Rs. 500,000/- per day from the date of such violation.
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