The Competition Commission of Pakistan (CCP) has fined Mezan Beverages (Pvt) Ltd Rs150 million for copying the packaging and trade dress of PepsiCo’s energy drink Sting.
According to the CCP, Mezan’s energy drink Storm closely replicated Sting’s overall design, including its colour scheme, bottle shape and branding, creating a strong likelihood of consumer confusion. The Commission described this as parasitic copying and a violation of Section 10 of the Pakistan Competition Act 2010.
Section 10 of the Act prohibits undertakings from engaging in deceptive marketing practices. These practices include:
- Distributing false or misleading information capable of harming the business interests of others
- Providing false or misleading information to consumers
- Making false or misleading comparisons of goods in advertising
- Fraudulently using another party’s trademark, firm name, product labelling or packaging
The case dates back to 2018, when PepsiCo Inc. complained that Mezan Beverages had designed Storm to closely resemble Sting in order to benefit from PepsiCo’s established brand reputation. Rather than responding to the substance of the allegations, Mezan challenged the CCP’s jurisdiction in court and obtained interim injunctions that delayed the inquiry for several years.
In 2023, the Lahore High Court dismissed Mezan Beverages’ petition and upheld the CCP’s authority to proceed with the investigation. The court noted that Mezan had used legal injunctions to stall the Commission’s work and directed the CCP to conclude its inquiry and issue a decision.
In its detailed ruling, the CCP found that Storm’s red colour palette, bold slanted white lettering and bottle shape closely resembled Sting’s branding, and could mislead ordinary consumers. The Commission stressed that having a registered trademark for Storm did not shield Mezan from competition law if its packaging created confusion in the market.
CCP Chairman Dr Kabir Sidhu said the regulator would not tolerate copying brands or using misleading packaging and marketing, regardless of a company’s size, and would take strict action in such cases.