Coffeehouse show-caused for using Starbucks logo

LAHORE: The Competition Commission of Pakistan (CCP) has issued a show cause notice to a Lahore-based coffeehouse for illegally using an international coffee giant’s logo to lure customers, a statement said on Tuesday.

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

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

“The restaurant claims it is offering Starbucks coffee made in Starbucks machines using the same method of production and giving customers the authentic Starbucks experience,” the CCP said.

The commission said Options International 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.

Although Options was selling Starbucks coffee’, it admitted that it was not an authorised franchisee of Starbucks International. In the absence of any contractual arrangement with Starbucks, it had no legitimacy to sell Starbucks coffee or make the claims to that effect.

The CCP said on the recommendations of the inquiry report, a show cause notice has been served on Options International and the company has been directed to respond in writing within fourteen days.

The commission 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.