The Lahore High Court threw out a case from Mezan Beverages. Mezan fought a notice from the Competition Commission of Pakistan (CCP). The notice accused Mezan of tricking people with their ads. The CCP began looking into Mezan Beverages after Pepsi Co Inc. complained. Pepsi said Mezan copied Pepsi’s energy drink ‘Sting‘ with their own drink ‘Storm‘. After looking into it, the CCP agreed with Pepsi. They told Mezan to explain themselves.
Mezan Beverages went to court to stop the CCP’s inquiry. In August 2021, the court paused the CCP’s notice. This stopped the CCP from moving forward.
After hearing both sides, the Lahore High Court made a decision. They said the Supreme Court of Pakistan had already backed the CCP’s right to start inquiries and collect information. The Supreme Court had ruled on this in a case called ‘CCP v. Dalda Foods Ltd’.
The court also talked about the CCP’s power compared to the Intellectual Property Organization of Pakistan (IPO). The IPO deals with intellectual property laws. The CCP deals with competition laws. The IPO Act and the Competition Act are different. Each one has its own rules and duties.
The IPO Act does not include the Competition Act. This means the CCP’s work is not under the IPO Act’s control. The law keeps them separate on purpose.
The court said that ‘deceptive marketing practices’ fall under the Competition Act. The CCP handles these cases, not the IPO.
To read our article about “Businesses must clearly display what they sell, says CCP” click here.
