Islamabad, The Competition Appellate Tribunal (CAT) has recently ruled against M/s Options International (SMC-Pvt.) Limited, a Pakistani restaurant chain found guilty of using the Starbucks brand fraudulently, increasing the penalty from Rs. 5 million to Rs. 6 million. This decision came after the company appealed a prior ruling by the Competition Commission of Pakistan (CCP) that penalized them for deceptively using the Starbucks brand to mislead consumers.
According to Competition Commission of Pakistan, the case originated when Starbucks, based in Washington State, filed a complaint against Lahore-based Options International for selling “Starbuck Coffee” and using “STARBUCKS MARKS” in their branding without authorization. The CCP’s investigation concluded that Options International had breached Section 10 of the Competition Act by disseminating false and misleading information that harmed Starbucks’ business interests. Although Options International ceased using the disputed branding and committed to comply with CCP’s directives, the misuse had occurred over a significant period, leading to the initial Rs. 5 million fine and a directive to publicly acknowledge their infringement in newspapers.
The CAT’s decision to dismiss the appeal and increase the fine underscores the CCP’s resolve to enforce laws against deceptive marketing practices and protect consumer interests and the integrity of international brands.