Islamabad: The Supreme Court of Pakistan has upheld a decision by the Competition Appellate Tribunal (CAT) that imposes a penalty of PKR 6 million on Lahore-based restaurant chain Options International for misleading consumers by fraudulently using the “STARBUCKS” branding. The court’s ruling reinforces measures against deceptive marketing practices that harm consumer trust and competitive fairness.

According to Competition Commission of Pakistan, the case originated when STARBUCKS, the internationally recognized coffeehouse chain registered in the State of Washington, lodged a complaint against Options International. The complaint detailed that the restaurant was not only selling coffee under the “Starbucks Coffee” label but also using the “STARBUCKS MARKS” in its branding, misleading the public into believing they were purchasing genuine Starbucks products.

The Supreme Court’s judgment emphasized that Options International’s actions distorted market competition by placing local competitors at a disadvantage, as consumers were likely to favor what they believed were legitimate Starbucks products over others. This ruling followed the CCP’s initial investigation, which concluded that the restaurant had indeed deceived consumers and adversely affected the business interests of competitors by disseminating false and misleading information.

Furthermore, the CCP had originally fined Options International PKR 5 million. However, upon appeal by the restaurant, CAT not only dismissed the appeal but also increased the penalty to PKR 6 million and adjusted the terms of the daily penalty. Despite Options International ceasing the use of the STARBUCKS MARKS and pledging compliance with CCP directives, the duration of their infringement warranted a substantial penalty.

In addition to the financial penalty, Options International was ordered by the CCP to issue public notices in major newspapers for three consecutive days, clarifying their misuse of the STARBUCKS branding to ensure public awareness of the deception.

This decision marks a significant affirmation of Pakistan’s commitment to enforcing competition laws and protecting consumers from fraudulent marketing practices that can influence their purchasing decisions and undermine market competition.