Deceptive marketing: CCP slaps fine on courier service providers
Action taken following complaint from DHL Pakistan.
ISLAMABAD:
The Competition Commission of Pakistan (CCP) has imposed a penalty of Rs4.5 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 passed an order after hearing the parties in a complaint filed by DHL Pakistan (Private) Limited.
CCP took a lenient view and did not slap penalty on two of the respondents, who were forthcoming and discontinued using the DHL trademark during the proceedings.
In the complaint, DHL had said seven courier service providers were using its trademark without authorisation, terming it misleading and false and in violation of Section 10 of the Competition Act 2010.
The CCP bench, after hearing the parties and analysing documents, concluded that the conduct of respondents was aimed at capitalising on the goodwill attached to the DHL trademark.
In a larger sense, it observed, trademarks promoted initiative and enterprise worldwide by rewarding owners of trademarks with recognition and financial profit. Trademark protection also hindered efforts of unfair competitors, such as counterfeiters, to use similar distinctive signs to market inferior or different products or services.
The bench has asked the respondents to ensure responsible behaviour in the future.
Published in The Express Tribune, January 3rd, 2013.
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The Competition Commission of Pakistan (CCP) has imposed a penalty of Rs4.5 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 passed an order after hearing the parties in a complaint filed by DHL Pakistan (Private) Limited.
CCP took a lenient view and did not slap penalty on two of the respondents, who were forthcoming and discontinued using the DHL trademark during the proceedings.
In the complaint, DHL had said seven courier service providers were using its trademark without authorisation, terming it misleading and false and in violation of Section 10 of the Competition Act 2010.
The CCP bench, after hearing the parties and analysing documents, concluded that the conduct of respondents was aimed at capitalising on the goodwill attached to the DHL trademark.
In a larger sense, it observed, trademarks promoted initiative and enterprise worldwide by rewarding owners of trademarks with recognition and financial profit. Trademark protection also hindered efforts of unfair competitors, such as counterfeiters, to use similar distinctive signs to market inferior or different products or services.
The bench has asked the respondents to ensure responsible behaviour in the future.
Published in The Express Tribune, January 3rd, 2013.
Like Business on Facebook to stay informed and join in the conversation.