The Competition Commission of Pakistan (CCP) has imposed a fine of Rs. 150 million on Mezan Beverages (Private) Limited for deceptive marketing of its “Storm” energy drink, which closely imitated PepsiCo’s Sting in packaging and trade dress.
The CCP found that Storm copied Sting’s overall look, including the red-dominant color scheme, bold slanted white lettering, bottle shape, and visual branding elements, creating a likelihood of consumer confusion at the point of sale. Such conduct was deemed parasitic copying and a violation of Section 10 of the Competition Act, 2010, amounting to deceptive marketing.
The legal dispute began in 2018 when PepsiCo filed a complaint, alleging Storm sought to benefit from Sting’s goodwill. Mezan attempted to delay the CCP proceedings by challenging the Commission’s jurisdiction and obtaining stay orders from the Lahore High Court in 2018 and 2021.
However, in June 2024, the High Court dismissed Mezan’s petition, upheld the CCP’s authority, and clarified that competition law proceedings are distinct from trademark disputes.
The CCP emphasized that consumer deception is assessed based on the overall commercial impression, not minor differences between products.
While Mezan held a registered trademark for “Storm,” the Commission ruled that trademark registration does not shield a company from competition law violations when passing-off and misleading practices are established.
By imposing the Rs. 150 million penalty, the CCP sent a clear message that copycat branding and misleading packaging will not be tolerated, regardless of the company’s size or local market presence. The ruling underscores the Commission’s commitment to protecting consumers from confusion and maintaining fair competition in the marketplace.
