CCP issues show cause notice to Shainal Foods for deceptive marketing practices

KARACHI: The Competition Commission of Pakistan (CCP) has issued a show cause notice under Section 30 of the Competition Act, 2010 to m/s Shainal Al-Syed Foods for prima facie imitating the branding of National Foods Limited, in violation of Section 10 of the Competition Act. CCP conducted an enquiry after receiving complaint from National Foods Limited alleging that Shainal Foods was preparing, packing, marketing, supplying and selling various food products using a trademark and logo imitated from National Foods. The company also informed that the colour scheme and design of the packaging of Shainal Foods’ products was similar to that of the packaging of National Foods’ products, which could mislead the consumers. The enquiry report concluded that prima facie Shainal Foods has resorted to the fraudulent use of logo, packaging, colour scheme, and design of National Food’s products, thus potentially harming the business interest of National Foods as well as misleading the consumers. CCP has directed Shainal Foods to reply in writing to the show cause notice within 14 days. CCP is empowered under the Competition Act to inter alia prevent deceptive marketing practices to protect consumers and businesses from anti-competitive activities.