CCP penalises Mezan Beverages Rs150m for misleading branding
The Competition Commission of Pakistan (CCP) has taken a major enforcement action against deceptive marketing practices.
The regulator has imposed a penalty of Rs150 million on Mezan Beverages (Private) Limited for engaging in deceptive marketing practices.
The Commission found that Mezan’s “Storm” energy drink imitated the packaging and trade dress of PepsiCo’s Sting energy drink.
It noted that the overall look, colour scheme, bottle design, and branding elements were closely replicated, creating a strong likelihood of consumer confusion at the point of sale.
The CCP concluded that the conduct amounted to parasitic copying and constituted deceptive marketing under Pakistan’s competition law, according to the press release.
The case dates back to 2018, when PepsiCo Inc. filed a complaint alleging that Mezan had deliberately designed Storm to benefit from the established goodwill of Sting in Pakistan’s energy drink market.
Instead of responding to the allegations on merit, Mezan repeatedly challenged the CCP’s jurisdiction and pursued prolonged litigation, obtaining stay orders from the Lahore High Court in 2018 and again in 2021.
These legal challenges delayed the inquiry for several years and prevented the Commission from concluding the matter in a timely manner.
In June 2024, the Lahore High Court dismissed Mezan’s petition, upheld the CCP’s authority to proceed with the case, and ruled that early challenges to show-cause notices were not maintainable.
The Court also clarified that regulatory proceedings are independent of trademark disputes and observed that Mezan had used litigation tactics to delay the process, allowing the inquiry to resume after years of suspension.
In its detailed order, the CCP held that Mezan’s Storm energy drink adopted a red-dominant colour scheme, bold slanted white lettering, aggressive visual motifs, and a bottle shape and presentation closely resembling Sting.
The Commission emphasized that deception is assessed based on the overall commercial impression rather than minor differences examined side by side.
It noted that an ordinary consumer with imperfect recollection was likely to be misled.
The Commission further ruled that Mezan’s registered trademark for “Storm” did not grant immunity from regulatory action.
It stated that trademark registration cannot shield conduct that results in consumer deception or passing-off.
While imposing the Rs150 million fine, the CCP reiterated that copycat branding and misleading packaging will not be tolerated.
Such practices would face strict action regardless of the size or local status of the company, reinforcing its commitment to protecting consumers and ensuring fair competition in Pakistan’s market.
