Rs20 million fine on company for deceptive packaging

ISLAMABAD: The Competition Commission of Pakistan (CCP) has decided the K&N’s Vs Dawn matter in favour of K&N’s and held that Dawn is guilty of copying K&N’s packaging for Dawn Frozen Foods products.

In addition to restraining Dawn, the CCP slapped a fine of Rs20 millions on Dawn Foods. This is the highest ever penalty imposed in lieu of product packaging and misuse of trademark case.

In its order CCP stated: “The extent of mimicry by the Dawn in terms of the overall layout, design size, shape and colour scheme of the K&N Packaging leads the Commission to the reasoned conclusion that the respondent is clearly culpable of and has resorted to parasitic copying. The consumers are clearly susceptible and at a serious risk of falling prey to deceptive confusion pertaining to the origin and at quality of instant commodity, due to strikingly similar packaging and labelling of the products.”

Tt is the first time that the concept of parasitic copying has been touched upon in Pakistan. K&N’s lawyers Ali & Associates submitted that this is an area that has come under a lot of international focus owing to growth of large scale supermarkets and potential for deception amongst consumers. Many countries are looking seriously into the matter to tackle the issue of parasitic copying where product packaging is deceptively copied to either deceive consumers or to influence their buying behaviour by positioning the copied product as a like substitute.