ISLAMABAD – The Competition Appellate Tribunal (CAT) slapped Rs6 million fine on Lahore-based restaurant, Options International, for fraudulently selling Starbucks branding in the country.
The specialized forum turned down the appeal submitted by M/s Options International (SMC-Pvt.) Limited, for illegally using Starbucks branding in its establishments.
In its verdict, Competition Appellate Tribunal (CAT) raised the penalty from the initial Rs. 50lacs to Rs60lacs.
Starbucks, the Seattle-based coffeehouse chain, started legal tussle against Pakistani eatery for fraudulently selling “Starbucks Coffee” and using Starbucks trademarks in its branding.
The food giant accused Lahore-based cafe of misleading consumers and damaging its business interests. The company confirmed that it had not opened any franchise in Pakistan.
CCP’s probe determined that Options International breached Section 10 of the Competition Act by spreading false and misleading information, deceiving consumers, and harming Starbucks’ business interests.
During the investigation, Options International admitted to the violation. CCP also issued an interim order, at Starbucks’s request, instructing Options International to cease using the labeling and packaging with the Starbucks trade name and logo without authorization.
Earlier, Options International appealed CCP’s decision to Competition Tribunal, which dismissed the appeal and increased the penalty, citing that Options continued using the trademark even after committing to the CCP.
