CCP issues notice to Lahore-based cafe for selling Starbucks coffee
Action taken after Starbucks complained about misuse of its trademark
PHOTO: REUTERS
LAHORE:
The Competition Commission of Pakistan (CCP) has issued show-cause notice to Options International Limited for what it says fraudulent sale of Starbucks coffee in Pakistan.
Earlier, Starbucks, an international chain of coffee houses registered in the state of Washington, had sent a formal complaint to the CCP, arguing that Options Coffee and More, a Lahore-based restaurant, was using its official trademark “Starbucks Coffee” and harming its business interest.
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Starbucks pointed out that it had not opened any franchise in Pakistan.
The CCP’s inquiry found that Options had displayed Starbucks’ trademark prominently on the main signage board of its cafes, packaging material, mugs, menu, flyers, website and Facebook page.
Options claimed that it was offering Starbucks coffee made in Starbucks’ machines using the same method of production and giving customers an authentic Starbucks experience.
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The inquiry report said by making these claims, Options International had violated Section 10 of the Competition Act by disseminating false and misleading information to deceive consumers and harm business interest of the complainant.
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Although Options was selling Starbucks coffee, it admitted that it was not an authorised franchise of Starbucks International. In the absence of any contractual arrangement with Starbucks, it had no legitimacy to sell Starbucks coffee or make claims to that effect.
Published in The Express Tribune, May 23rd, 2018.
The Competition Commission of Pakistan (CCP) has issued show-cause notice to Options International Limited for what it says fraudulent sale of Starbucks coffee in Pakistan.
Earlier, Starbucks, an international chain of coffee houses registered in the state of Washington, had sent a formal complaint to the CCP, arguing that Options Coffee and More, a Lahore-based restaurant, was using its official trademark “Starbucks Coffee” and harming its business interest.
Nestle pays $7.15 billion to sell Starbucks products
Starbucks pointed out that it had not opened any franchise in Pakistan.
The CCP’s inquiry found that Options had displayed Starbucks’ trademark prominently on the main signage board of its cafes, packaging material, mugs, menu, flyers, website and Facebook page.
Options claimed that it was offering Starbucks coffee made in Starbucks’ machines using the same method of production and giving customers an authentic Starbucks experience.
Starbucks to close 8,000 US stores for one afternoon
The inquiry report said by making these claims, Options International had violated Section 10 of the Competition Act by disseminating false and misleading information to deceive consumers and harm business interest of the complainant.
Starbucks chief executive apologises for arrests of two black men
Although Options was selling Starbucks coffee, it admitted that it was not an authorised franchise of Starbucks International. In the absence of any contractual arrangement with Starbucks, it had no legitimacy to sell Starbucks coffee or make claims to that effect.
Published in The Express Tribune, May 23rd, 2018.