ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued a show cause notice to a Lahore-based restaurant, Options Coffee and More, for prima facie fraudulently selling Starbucks coffee in Pakistan.

Starbucks, an international chain of coffee houses registered in the state of Washington, sent a formal complaint to the CCP that Options Coffee and More was fraudulently using its official trademark, Starbucks Coffee, deceiving consumers and harming its business interest. Starbucks said it had not opened any franchise in Pakistan.

The commission’s inquiry found that Options had displayed the Starbucks trademark prominently on the main signage boards of its cafés, the packaging materials, mugs, menus, flyers, its website, and Facebook page.

It claimed that it was offering Starbucks coffee made in Starbucks machines using the same method of production and giving customers the authentic Starbucks experience.

The inquiry report said that by making these claims, Options had, prima facie, violated Section 10 of the Competition Act by disseminating false and misleading information to deceive consumers and harm the business interest of the complainant.

According to the inquiry report, Options admitted that it was not an authorised franchisee of Starbucks.

In the absence of any contractual arrangement with Starbucks, Options had no legitimacy to sell Starbucks coffee or make the claims to that effect.

On recommendations of the inquiry report, a show cause notice has been served on Options and the company has been directed to respond in writing within 14 days.

CCP is mandated under the Competition Act to ensure free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive practices, including deceptive marketing practices.

Published in Dawn, May 23rd, 2018